Reuters: Apple in talks with China's CATL, BYD over battery supplies for its electric car, wants manufacturing in US

[Saucycarpdog]

EXCLUSIVE Apple, Chinese manufacturers in talks on U.S. car battery factory -sources

Apple Inc (AAPL.O) is in early-stage talks with China's CATL (300750.SZ) and BYD (002594.SZ), about the supply of batteries for its planned electric vehicle, four people with knowledge of the matter said.

www.reuters.com

Apple Inc (AAPL.O) is in early-stage talks with China's CATL (300750.SZ) and BYD (002594.SZ), about the supply of batteries for its planned electric vehicle, four people with knowledge of the matter said.

The discussions are subject to change and it is not clear if agreements with either CATL or BYD will be reached, said the people who declined to be named as the discussions are private.

Apple has made building manufacturing facilities in the United States a condition for potential battery suppliers, said two of the sources.

CATL, which supplies major car makers including Tesla Inc (TSLA.O), is reluctant to build a U.S. factory due to political tensions between Washington and Beijing as well as cost concerns, the two people said.

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Apple is in favor of using lithium iron phosphate batteries that are cheaper to produce because they use iron instead of nickel and cobalt which are more expensive, the four people said.

People familiar with the matter have previously said Apple's planned EV could include its own breakthrough battery technology. It was not immediately clear if the discussions with CATL and BYD involved Apple's own technology or designs.

The discussions come at a time when the U.S. government is looking to attract more EV manufacturing. U.S. President Joe Biden's proposed $1.7 trillion infrastructure plan includes a $174 billion budget to boost the domestic EV market with tax credits and grants for battery manufacturers, among other incentives.

Many battery makers are ramping up production to meet soaring worldwide demand as car makers accelerate their shift to electric vehicles to comply with tougher emission rules aimed at tackling global warming.

Reuters reported last week that CATL is planning a major new automotive battery plant in Shanghai, continuing a blistering pace of expansion that will cement its lead as the world's No.1 supplier. The factory would near Tesla's China manufacturing operations.

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[Humidex]

Worth noting that Berkshire Hathaway has a stake in BYD (alongside Apple) so that might tilt the contract towards them.

 

[Deleted member 22630]

Interesting.