Byton, a cash-strapped Chinese electric car startup, inked a deal on Monday with iPhone maker Foxconn, which is expected to enable its first model to roll off the assembly line by the first quarter of 2022.

In a statement, Byton said Foxconn will provide its expertise in advanced manufacturing technology, operational management experience and will share industrial resources to support the production of its model, the M-Byte SUV.

Bloomberg said Foxconn, whose main listed arm is Hon Hai Precision Industry Co, plans to invest around $200 million in the startup. Byton did not comment.

Byton made the premiere of the M-Byte SUV's series version at the Frankfurt auto show in 2019.

The first pre-production vehicles rolled off the production line at its plant in Nanjing, Jiangsu province, and completed safety tests in the first half of 2020. Byton won the new energy vehicle production license in June 2020.

However, due to financing problems and the COVID-19 pandemic, the startup suspended all its operations in China since July 2020. Its co-founder and former CEO Daniel Kirchert quit in October.

"We are excited to be back," said Ding Qingfen, co-CEO of Byton, in a statement after the deal was signed on Monday.

Founded by former BMW and Infiniti executives, Byton was one of the most promising startups in China, with its models expected to take on those from premium brands including Audi and BMW.

Its investors include State-owned China FAW Group and EV battery maker CATL, which supplies batteries to Tesla.

Analysts said the partnership with Byton could help Foxconn to gain car-making experience. The company has long shown interest in the in the booming sector.

"This will allow us to contribute toward the further growth of the EV industry, a demonstration of our commitment in the transformation of the traditional automotive industry," said Young Liu, chairman of Foxconn.

Earlier last year, Foxconn announced a plan to build a partnership with Fiat Chrysler to develop and make electric vehicles in China.

In October 2020, the company unveiled its first electric-vehicle chassis as well as an open software platform. It will start shipping its first developer kit in April this year, according to Bloomberg.

Foxconn has been supplying parts to other major carmakers including Tesla Inc.

In the statement on Monday, Byton said "The partnership will advance the growth of each company's EV business."

The China Association of Automobile Manufacturers had estimated that around 1.3 million new energy vehicles could be sold in China in 2020, and the figure could reach 1.8 million this year.