Apple aims to launch a vehicle in 2024 and has made building manufacturing facilities in the US a condition: Reuters.
Apple Inc. is in initial talks with CATL and BYD of China on the supply of batteries for its planned electric vehicle, according to four people with knowledge of the matter.
Discussions are subject to change and it is unclear whether agreements will be reached with CATL or BYD, said people who refused to be appointed as the discussions are private.
Apple has made the construction of manufacturing facilities in the United States a condition for potential battery suppliers, two of the sources said.
CATL, which supplies major vehicle manufacturers, including Tesla Inc., is reluctant to build a U.S. factory because of political tensions between Washington and Beijing, as well as cost concerns, the two said.
It was not immediately clear if Apple is also talking to other battery manufacturers.
Apple, which has yet to make a public announcement about its vehicle plans, declined to comment. CATL, the world’s largest car battery maker, and BYD, the world’s No. 4, also declined to comment.
BYD shares boosted news gains to a 5.4 percent increase in Hong Kong in late afternoon trading and a 6.5 percent close in Shenzhen. CATL reversed previous losses to finish 0.5 percent more.
Apple is in favor of using lithium-iron phosphate batteries that are cheaper to produce because they use iron instead of nickel and cobalt, which are more expensive, the four said.
He has been working on autonomous driving technology and in 2024 aimed for the production of a passenger vehicle, Reuters reported in December.
People familiar with the matter have previously said that Apple’s planned EV could include its own innovative battery technology. It was not immediately clear whether discussions with CATL and BYD included Apple’s own technology or designs.
The discussions come at a time when the U.S. government is looking to attract more electric vehicle manufacturing. The $ 1.7 trillion proposed by U.S. President Joe Biden’s infrastructure plan includes a $ 174 billion budget to boost the domestic electric vehicle market with tax credits and subsidies for battery manufacturers. among other incentives.
Many battery manufacturers are increasing production to meet growing global demand, as automakers are accelerating their move to electric vehicles to meet tougher emission standards designed to combat global warming.
Chinese battery manufacturers are expected to grow at a faster pace than their foreign counterparts, thanks to a further expansion of the world’s largest electric vehicle market, SNE Research reported in a June report.
Reuters reported last week that CATL is planning a major new car battery plant in Shanghai, which continues at an intensive pace of expansion that will consolidate its leadership as the world’s No. 1 supplier. The factory would be close to Tesla’s manufacturing operations in China.