Reuters reported on Tuesday that Apple is in talks with Chinese firms about securing batteries for its planned range of electric vehicles (EVs).
According to the news agency, Apple has begun early-stage discussions with Chinese auto battery makers CATL and BYD, but it did not name its sources.
The claim being made is that Apple is seeking battery supply partners who are prepared to set up manufacturing facilities in the US.
CATL is understood to be planning a new battery facility close to Tesla’s manufacturing base near Shanghai, but it is unclear whether it would agree to set up a new factory in the US.
Meanwhile, Apple is said to have a preference for lithium-iron-phosphate batteries, which are more cost-effective to produce compared to cobalt or nickel-based batteries.
Apple EV reports
Speculation has been rife about Apple’s possible foray into the EV market for some time, though Apple has thus far declined to comment. A separate Reuters report from December claimed that 2024 was a likely launch date for an Apple EV.
In January, reports from Korean media outlets suggested Apple had partnered with Hyundai to develop a self-driving EV car. At first, Hyundai confirmed the story, stating that collaboration with Apple was in the early stages, though later tried to distance itself from the reports. The following month, reports surfaced in Korea that Apple was partnering with Kia to produce EVs, though neither company would comment.
Apple was up 1.1% in early US trading on Tuesday. The shares are little changed year to date.
Read more: Apple stock forecast 2021 and beyond
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Source : Capital.com