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Apple Talking With CATL, BYD For EV Battery Supply For Its Electric Car: Reuters


06/08/2021


Apple Talking With CATL, BYD For EV Battery Supply For Its Electric Car: Reuters
Negotiations between the iPhone maker Apple Inc and the Chinese firms CATL and BYD over the supply of batteries for the planned electric vehicle of the American company is currently undergoing and is in the early stages, claimed a report published by the News agency Reuters citing sources with knowledge of the matter.
 
The report however quoted the sources saying that the negotiations could be changed and nothing is certain about apple reaching an agreement with either CATL or BYD.
 
According to the report, one of the preconditions put forward by Apple before the Chinese companies is the necessity of building manufacturing facilities for batteries by the Chinese battery suppliers in the United States.
 
But the sources reportedly said that there is reluctance for CATL, which is one of the suppliers of electric car batteries for major car makers including Tesla Inc, of building a manufacturing unit in the United States because of the ongoing political tensions between Washington and Beijing as well as because of the high costs involved.
 
The report did not mention whether Apple was also negotiating with other battery suppliers.
 
There were also no comments on the issue from Apple which has so far not made any public comments on it making an electric vehicle. There were also no comments available from CATL, the biggest automotive battery maker of the world, and from BYD, the fourth largest battery maker of the world.
 
Sources also said that iron phosphate batteries is preferred by Apple as a power source for its electric cars because such batteries use iron and not nickel and cobalt which are far more expensive – which increases the cost of the batteries.
 
According to reports, Apple is currently working on developing self-driving technology and aims to start commercial production of electric vehicles in 2024.
 
Apple’s own breakthrough battery technology could be a part of the planned electric vehicle of Apple, said previous reports quoting information from sources familiar with the matter.
 
The Reuters report did not make it clear whether Apple's own technology or designs were also included in the discussions with CATL and BYD.
 
These reported negotiations are taking place at a time when the US administration is itself trying to attract more electric vehicle manufacturers to the country. A $174 billion budget to for boosting the domestic electric vehicles market of the US through tax credits and grants for battery manufacturers, among other incentives, is included in the proposed $1.7 trillion infrastructure plan of the US President Joe Biden.
 
With car makers speeding up shifting to electric vehicles to comply with tougher emission rules aimed at tackling global warming, there has been a global surge in demand for electric cars and many battery makers are ramping up production to meet that demand.
 
SNE Research said in a June report that the growth in demand for electric vehicles in China, the largest electric vehicle market of the world, has prompted Chinese battery makers to grow at a faster pace compared to their foreign peers.
 
(Source:www.reuters.com)