$Lordstown Motors(RIDE.US)$ stock is trading 21.8% higher at $1.84 in the premarket session on Thursday.

What Happened: The beleaguered electric vehicle startup said on Wednesday it has closed a $230 million deal to sell its Ohio factory to Taiwan's Hon Hai Technology (OTC:HNHPF), better known as Foxconn, sending its shares higher after the bell.

The deal will infuse Lordstown Motors with the much-needed cash to continue the development of its Endurance electric pickup.

Lordstown Motors had in November entered an agreement with Foxconn for the sale of its Ohio facility, a former $General Motors(GM.US)$ factory. 

The EV maker said said Foxconn would build the Endurance pickup truck at the facility under contract, besides other vehicles including $Fisker(FSR.US)$ low-cost model that's expected to be launched in 2024.

Why It Matters: The crucial deal lends Lordstown a fresh breath of air since — if the deal had not gone through — it would have been then forced to pay back $200 million Foxconn gave it as a downpayment over several months. The deal was initially expected to close in April but was pushed back. 

The two companies also announced a joint venture named MIH EV Design LLC in which $Apple(AAPL.US)$ supplier Foxconn will own 55% and the rest would be owned by Foxconn.

Taiwan-based Foxconn will commit $100 million to the joint venture, including a $45 million loan to Lordstown, to build a lineup of electric pickup trucks.