In a statement Fisker Inc’s chairman and CEO Henrik Fisker said, the electric vehicle startup is weighing options to set up a battery cell manufacturing facility with a major supplier in either Europe or the United States.

The move is aimed at securing components in its supply chain.

Earlier Fisker had struggled with the recall of batteries made by its previous supplier A123, which later filed for bankruptcy.

“We did not want to take any risk on batteries,” said Fisker while adding that the company will use prismatic cells from one of the world’s four largest suppliers.

Samsung SDI makes prismatic cells for BMW cars and China’s CATL supplies prismatic cells to Tesla.

On Wednesday, in a statement Fisker said it would collaborate with Foxconn to produce more than 250,000 vehicles a year, starting from late 2023.

In December Fisker had said, Canada’s Magna International Inc would initially manufacture its first vehicle, the Ocean SUV, in Europe.

The company is on track to start producing the Ocean SUV next year with a starting price of $37,499.

Fisker Inc was launched by Henrik Fisker, a former Aston-Martin designer whose previous venture, Fisker Automotive collapsed in 2013.

On Thursday, Fisker reported a widening of its net loss to nearly $12 million during the fourth quarter, up from $3 million from a year earlier.

Fisker’s reverse merger with special-purpose acquisition company Apollo Global Management provided the startup with $1 billion in gross proceeds.