Home / Business / Exclusive: Apple is in talks with CATL, BYD over electric vehicle battery supply.

Exclusive: Apple is in talks with CATL, BYD over electric vehicle battery supply.

Apple Inc (002594.SZ) is in preliminary talks with China’s CATL (300750.SZ) and China’s BYD (002594.SZ) over a planned supply of batteries for electric vehicles. Four people with knowledge of the matter said.

Discussions are subject to change and it is unclear whether an agreement is reached with CATL or BYD, who declined to be named because the discussions were private.

Apple has designated its U.S. facility as a condition for potential battery suppliers, two sources said.

CATL, which supplies major automakers including Tesla Inc (TSLA.O), is reluctant to build U.S. factories. due to political tensions between Washington and Beijing including cost concerns

It wasn’t immediately clear whether Apple was also in talks with other battery makers.

Apple, which has not made public announcements about its car plans. Declined to comment. CATL, the world’s largest car battery maker, and world number four BYD also declined to comment.

US company Agree with the use of lithium-ion phosphate batteries that are cheaper to manufacture. Because iron is used instead of nickel and cobalt, which are more expensive, four people said.

Apple is working on self-driving technology and aims for 2024 for passenger car production, Reuters reported in December. Read more

Previously, people familiar with the matter said Apple’s planned EVs could include its own groundbreaking battery technology. It was not immediately clear whether the discussions with CATL and BYD were related to Apple’s own technology or design.

The debate comes at a time when the US government is looking to attract more EV production, the $1.7 trillion infrastructure plan proposed by US President Joe Biden. That includes a $174 billion budget to boost the domestic electric vehicle market with tax credits and subsidies for battery makers. including other incentives Read more

Many battery manufacturers are increasing their production to meet growing demand worldwide. As automakers accelerate the shift to electric vehicles to meet tougher emissions regulations to tackle global warming

SNE Research said in a report by SNE Research that Chinese battery makers will grow faster than their overseas counterparts with the world’s largest EV market expansion.

Reuters reported last week that CATL was planning to build a new large-scale car battery factory in Shanghai. This will be followed by rapid expansion that will strengthen its leadership as the No. 1 supplier in the world. The plant will be located near Tesla’s China manufacturing facility. Read more

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