Apple in talks with CATL, BYD to supply batteries for its electric vehicle project

Beijing time, June 8th afternoon news, according to reports, four people familiar with the matter revealed that Apple is in preliminary communication with China's CATL and BYD to discuss battery supply for Apple's planned electric vehicles.

The specific circumstances could change, and it’s unclear whether Apple can reach an agreement with CATL or BYD, the people said.

Apple has made building a manufacturing plant in the United States a condition for selecting potential battery suppliers, two of the people said. But Contemporary Amperex Technology Co., which supplies batteries to automakers including Tesla, appears reluctant to build a factory in the United States.

It is not clear whether Apple is also in contact with other battery manufacturers.

Apple has not yet made its car-making plans public and declined to comment on the news. CATL and BYD also declined to comment.

The four people also revealed that Apple prefers to use lithium iron phosphate batteries, which are cheaper to produce because they use iron instead of more expensive nickel and cobalt.

According to reports in December last year, Apple has been researching autonomous driving technology and plans to produce passenger cars in 2024. People familiar with the matter have previously said that Apple's planned electric vehicles may include the company's own breakthrough battery technology. It is also unclear whether Apple's discussions with CATL and BYD involve Apple's own technology or design.

At present, the US government is also working hard to attract more electric vehicle manufacturing. US President Biden’s $1.7 trillion infrastructure plan includes a $174 billion budget aimed at promoting the development of the domestic electric vehicle market in the United States through tax credits and grants to battery manufacturers and other incentives.

As automakers accelerate the shift to electric vehicles to comply with stricter emissions standards set to address global warming, many battery manufacturers are working to increase battery production to meet growing global demand.

Chinese battery makers are expected to grow faster than their foreign counterparts as the country's electric vehicle market further expands, South Korean market research firm SNE Research said in a June report.

In addition, media reported last week that CATL plans to build a large-scale automotive battery factory in Shanghai, continuing its rapid expansion and consolidating its leading position as the world's number one battery supplier. It is said that this battery factory may be adjacent to Tesla's manufacturing plant in China.