Apple is in early talks with China’s CATL and BYD to supply batteries. Apple is talking about its planned electric vehicle. Four persons with knowledge of the matter have said this. It is not clear whether CATL or BYD will be settled. Here on the condition of anonymity, the person associated with the matter said. It has come from two sources that Apple has put manufacturing facilities in the United States as a prerequisite for potential battery suppliers.
The two individuals said CATL, which supplies major carmakers including Tesla, is not showing interest in building a US factory due to political tensions between Washington and Beijing, as well as cost concerns. It is not yet clear whether Apple is in all communication with other battery makers.
Apple is yet to announce its car plans and the company declined to comment. The world’s largest automotive battery maker CATL and world number four BYD also declined to comment.
Due to this news, BYD shares rose up to 5.4 percent in the afternoon in Hong Kong and closed trading in Shenzhen with a rise of 6.5 percent. On the other hand, CATL made a profit of 0.5 percent after making up the earlier loss.
Apple favors using lithium iron phosphate batteries that are cheaper to produce. Because they are made by using iron instead of nickel and cobalt. Whereas nickel and cobalt are quite expensive metals. These four people said.
Reuters reported in December that the company is working on self-driving technology and aims to have its own passenger vehicle by 2024.
People familiar with the matter said that earlier Apple was planning to use its own battery technology for its electric vehicles. It was unclear whether the discussions with CATL and BYD also included Apple’s own technology or designs.
The discussion comes at a time when the US government is looking to encourage more EV manufacturing. US President Joy Biden has proposed an infrastructure plan of $1.7 trillion (about Rs 1,23,90,960 crore) of which $174 billion (about Rs 12,68,310 crore) has been earmarked to boost the domestic EV market. It also includes tax credits and grants and other incentives.
Many battery manufacturers are ramping up production to meet the growing demand around the world. The reason for this is to tackle global warming. As a result, car makers are increasingly turning to electric vehicles to comply with tougher emissions regulations.
SNE Research said in its June report that China’s battery makers would grow faster than their foreign peers. The credit for which goes to the expansion of the world’s largest EV market.
Reuters reported last week that CATL is planning a major new automotive battery plant in Shanghai. Which is continuing the fast pace of expansion. This will strengthen its lead as the world’s number one supplier. Its factory will be near Tesla’s China manufacturing operations.