Poland's Prime Minister Donald Tusk said Tuesday that its state-backed auto venture would partner with Taiwanese tech giant Foxconn to build hundreds of thousands of cars annually for the domestic and European market.

Tusk said the government would finalise talks with Foxconn in the autumn to construct a hub in Jaworzno, southern Poland, "which will be integrated with the entire industrial and technological ecosystem".

The Polish government will invest invest 4.5 billion zlotys (1.1 billion euros) in the venture, he added.


The site aims to produce 400,000 midsize electric SUVs a year, which the venture will have exclusive rights to sell in Europe.

Poland hopes the deal will allow it to capitalise on growing demand for EVs as the European Union enforces strict limits on the industry's CO2 emissions, even though the uptake by clients has been less rapid than many officials across the bloc expected.

Foxconn is the world's largest electronics contract manufacturer, making products for major tech firms including including Apple iPhones.

Eager to diversify into electric vehicles, it has also approached automakers in Japan, striking in January a deal with Japan's Mitsubishi Group.

ElectroMobility's CEO Cyprian Gronkiewicz told the Polish parliament last week that construction of the factory would begin in spring 2027.

Foxconn will also be investing in a semiconductor integration and testing plant near Wroclaw in southwestern Poland.

The plant was initially meant to receive a massive $4.6 billion investment from the US tech giant Intel, but the firm withdrew from the project last July.