Apple is reportedly in early talks with battery suppliers CATL and BYD that could help the tech giant get an electric vehicle into production.
Four people familiar with the matter told Reuters that the companies were in non-binding negotiations about battery deals that would see Apple using lithium iron phosphate batteries in an upcoming vehicle. Those batteries, which are reportedly also being considered by Tesla in China, are cheaper because of the relative ubiquity of iron but offer a reduced range.
One sticking point, for CATL at least, is Apple’s insistence that a manufacturing site be built in the U.S. Although that would open it up to new incentives proposed by the Biden administration, the battery manufacturer is hesitant because of the tensions between the American and Chinese governments.
Read Also: LG And Magna Joint Venture Tipped To Make The Apple Car A Reality
Apple has not officially confirmed its plans for a car of any description, but CEO Tim Cook recently spoke about the opportunity that autonomous cars present on the Sway podcast.
“The autonomy itself is a core technology, in my view,” Cook said, per CNBC. “If you sort of step back, the car, in a lot of ways, is a robot. An autonomous car is a robot. And so there’s lots of things you can do with autonomy. And we’ll see what Apple does. We investigate so many things internally. Many of them never see the light of day. I’m not saying that one will not.”
As well as investigating internally, reports have abounded about the conversations Apple has been having with suppliers and partners. The tech industry giant is reportedly also preparing to strike a deal with a joint venture between LE Electronics and Magna International for electric motors. Previously, the company was also tied to Hyundai, though the talks reportedly fell through.
If Apple does come out with an EV, it won’t be the only smartphone manufacturer to do so. A number of Chinese smartphone manufacturers, like Xiaomi and Oppo have also have also expressed their intent to get into the mobility game. Apple has reportedly set 2024 as the target for production of passenger vehicles.