Foxconn, the maker of Apple's iPhones, has announced plans to produce electric vehicles (EV) for Japanese car giant Mitsubishi Motors.

Under the agreement in principle, a Foxconn joint venture will design and build cars in Taiwan for Mitsubishi.

The companies say they expect the new model to be available by the end of next year, under what would be Foxconn's first major contract in the booming and highly competitive EV industry.

Japanese car makers like Mitsubishi have faced growing competition from mainland Chinese rivals, particularly in markets in South East Asia, South America and Europe.

The companies said the cars will be built by Foxtron - Foxconn's EV joint venture with Taiwanese car maker, Yulon Motor.

"Foxtron will provide design and manufacturing management services and this model is expected to enter the Australia and New Zealand markets in the second half of 2026," they added.

At this stage, the agreement is a so-called memorandum of understanding - a non-binding deal between the two companies. The companies have said they "will proceed with discussions towards a definitive agreement."

Foxconn is the world's largest contract electronics manufacturer and counts major technology companies such has Apple among its customers.

It previously said it would consider buying a stake in Japan's Nissan Motor for "co-operation" as it looked to get into the motor industry.

Mitsubishi Motors is a junior partner in an alliance between Nissan and French car maker Renault.

The moves come as China's car industry has expanded rapidly in recent years and the world's second largest economy has emerged as a leader in the growing EV market.

Established car makers around the world have struggled to compete as major Chinese players like BYD continue to win new customers.