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Apple Car battery supplier talks break down, claims report

Hyundai Egmp
Hyundai Egmp (Image credit: Hyundai)

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.

Stephen Warwick
Stephen Warwick

Stephen Warwick has written about Apple for five years at iMore and previously elsewhere. He covers all of iMore's latest breaking news regarding all of Apple's products and services, both hardware and software. Stephen has interviewed industry experts in a range of fields including finance, litigation, security, and more. He also specializes in curating and reviewing audio hardware and has experience beyond journalism in sound engineering, production, and design.

Before becoming a writer Stephen studied Ancient History at University and also worked at Apple for more than two years. Stephen is also a host on the iMore show, a weekly podcast recorded live that discusses the latest in breaking Apple news, as well as featuring fun trivia about all things Apple.