What you need to know
- A report says talks with suppliers for Apple's Car battery have broken down.
- Two Chinese firms were not able to deliver on Apple's request to build plants in the U.S. that would serve it exclusively.
- Talks could be reignited.
A new report says that talks with Chinese suppliers who could make the battery for Apple Car have broken down.
From Reuters:
Apple Inc's (AAPL.O) talks with China's CATL and BYD over battery supplies for its planned electric vehicle have been mostly stalled after they refused to set up teams and build U.S. plants that would solely cater to the tech giant, three people with knowledge of the discussions said.
The report says CATL and BYD told Apple sometime in the last two months, but that Apple hasn't given up on resuming the talks.
Apple reportedly favors Chinese suppliers because battery makers are further ahead in making Lithium Iron Phosphate (LFP) batteries, preferred by Apple because they're cheaper.
One source told Reuters the reluctance to onshore in the U.S. for CATL in part stems from tensions between Beijing and Washington, as well as cost, and difficulties finding sufficient personnel. As a result, Apple has reportedly sent a group of people to Japan in October, who are in talks with Japanese battery makers including Panasonic.
Apple reportedly has an autonomous electric vehicle in the works that could be released as early as 2024 or 2025. Reports have indicated Apple is looking far and wide for a manufacturing partner, with a theme suggesting the company would prefer to make its car in the U.S. Apple has operated a not-so-secret Project Titan within its walls for a number of years.
