Automotive supply and contract manufacturer Magna announced that it has entered into strategic cooperation agreements with emerging electric vehicle company Fisker. The new agreements provide a framework for platform sharing and manufacturing cooperation for the Fisker Ocean SUV, expected to begin production in 2022. As part of the agreements, Magna will take an ownership stake in Fisker, in the form of warrants representing 6% of the EV company’s equity.

Swamy Kotagiri, President of Magna, said:

“We are very happy to be able to work with Fisker on such an exciting, sustainable product and to see what additional opportunities this cooperation may bring. This is a great example of our strategy to leverage our strong portfolio to scale for future mobility needs and utilize our full vehicle engineering and manufacturing capabilities. This is a unique competitive position for us, particularly with new mobility players and OEMs seeking to expand their electrified offerings.”

According to the new agreement, The Fisker Ocean will initially be manufactured exclusively by Magna in Europe. The companies stated that the vehicle will leverage Magna’s EV architecture combined with the Fisker-Flexible Platform Adaptive Design (FF-PAD) to create a lightweight, aluminum intensive platform for the new SUV.

Henrik Fisker, Chairman and CEO of Fisker, said:

“We chose to leverage the Magna EV architecture after detailed due diligence on several options – and in consideration of our own product and technology strategy. Further, having Magna take such a committed position in the project and our company demonstrates the depth of this cooperation.”

Fisker Inc. recently announced that it will become a public company following a business combination with Spartan Energy Acquisition Corp. Spartan is a special purpose acquisition company sponsored by an affiliate of private equity firm Apollo Global Management.

Geoffrey Strong, Chairman and CEO of Spartan and Senior Partner, Co-Head of infrastructure and natural resources at Apollo Global Management said:

“This relationship with Magna marks an important milestone for Fisker as the company continues to make progress towards achieving its future goals. We are confident that Fisker will continue this positive momentum as we work towards the close of our transaction and beyond.”