Internal sources indicated that the American technology company Apple may plan to partner with the Chinese companies CATL and BYD to supply batteries for its planned electric car.
Sources say that talks have already started between the three companies, although it is believed that no concrete agreement has been reached so far. The news also indicates that Apple is taking actual steps in its plans to produce an electric car.
Apple will likely settle on lithium iron phosphate batteries, which are cheaper to produce due to their composition. Apple has set some basic requirements for a potential battery supply for its car.
The companies are supposed to have US manufacturing capacity, although CATL does not have any US manufacturing plant yet.
Amid rising tensions between Washington and Beijing, CATL is reluctant to set up shop in the United States, because it fears it will be caught in the cross-fire of politics. Furthermore, the internal source also noted that cost considerations may prevent CATL from manufacturing in the US.
CATL is a global leader in car battery production, while BYD is the world’s fourth largest car battery maker. Apple may also discuss with other battery manufacturers before deciding on the preferred supplier of batteries for its electric vehicle.