Apple is in initial talks with Chinese companies CATL and BYD to supply batteries for the electric vehicles it plans to make, four people with knowledge of the matter told Reuters news agency.
The talks are subject to change and it is unclear whether agreements will be reached with technology firm CATL or manufacturing company BYD, said the sources who declined to be identified because of the privacy of the approaches.
Apple, led by Tim Cook, has made it a condition for potential battery suppliers to build manufacturing facilities in the United States, according to people who reported on the talks.
A high-ranking official in the administration of President Joe Biden confirmed the condition on Tuesday.
“I understand that Apple is talking about building advanced battery factories here in the United States,” Jared Bernstein, an economic adviser to the White House, told Reuters. “That is completely consistent with what the president has talked about in terms of offshoring of supply chains, particularly in areas where we could grab global market share,” he added.
CATL, which supplies major automakers including Tesla, is reluctant to build a factory in the United States due to political tension between Washington and Beijing, as well as concerns about costs, two people said.
It was not immediately clear if Apple is also talking to other battery makers.
Apple, which has yet to make a public announcement about its plans for the car, declined to comment. CATL, the world’s largest car battery maker, and BYD, the world’s fourth, did not respond either.
Apple is in favor of using lithium iron phosphate batteries, which are cheaper to produce because they use iron rather than nickel and cobalt, the four people said.
People familiar with the matter had previously said that Apple’s planned electric vehicle could include its own battery technology, but it was unclear whether the discussions with CATL and BYD included Apple’s own technology or designs.
