Electric-truck maker Lordstown Motors Corp. said Thursday it plans to sell its auto factory in Ohio to contract assembler Foxconn Technology Group, marking a major pivot for the cash-strapped startup as it works to bring its first pickup to market.

The two companies have entered into a nonbinding agreement for Lordstown to sell the facility and property for a purchase price of $230 million with the exception of certain assets, said Lordstown Motors Chief Executive Daniel Ninivaggi.

Additionally,...

Electric-truck maker Lordstown Motors Corp. said Thursday it plans to sell its auto factory in Ohio to contract assembler Foxconn Technology Group, marking a major pivot for the cash-strapped startup as it works to bring its first pickup to market.

The two companies have entered into a nonbinding agreement for Lordstown to sell the facility and property for a purchase price of $230 million with the exception of certain assets, said Lordstown Motors Chief Executive Daniel Ninivaggi.

Additionally, Foxconn plans to invest $50 million into the Ohio-based startup through a purchase of common stock, and Lordstown Motors would use the Taipei-based electronics assembler to manufacture vehicles for the company at the factory, he said.

A definitive purchase agreement is expected to be reached by Oct. 31, and the deal’s closing could come next April, Mr. Ninivaggi added.

The purchase agreement comes as Lordstown Motors has been trying to raise capital, after warning earlier this year it was burning through cash faster than expected and it lacked the funds to scale up commercial production.

Lordstown Motors said Foxconn would offer employment to certain agreed upon operational and manufacturing employees.

The acquisition also represents a major milestone for Foxconn, which has set its sights on expanding into the auto industry, assembling vehicles on a contract basis much in the way it builds iPhones for Apple Inc.

Earlier this year, Foxconn reached a deal with another electric-vehicle startup, Fisker Inc., to jointly produce more than 250,000 vehicles a year. The collaboration would be for Fisker’s second model, although an exact location wasn’t specified at the time.

Mr. Ninivaggi said Foxconn would also build Fisker models at the Ohio factory, which had for years made small cars for General Motors Co.

Write to Christina Rogers at christina.rogers@wsj.com and Ben Foldy at Ben.Foldy@wsj.com