Apple Negotiating for EV Batteries with Chinese Manufacturers

Apple Inc is negotiating with Chinese manufacturers CATL and BYD regarding the supply of batteries for its planned launching of electric vehicles in 2024.

Four unnamed people familiar with the matter confirmed the early-stage negotiation saying that the discussion is subject to change and no definitive agreement has been reached yet with either of the two Chinese companies.

The sources who declined to be identified said that Apple has made it a condition for the potential battery suppliers to build a manufacturing facility in the United States.

CATL, which is also Tesla’s supplier, is hesitant to agree on the said condition due to political tensions between the United States and China as well as issues on costs.

Apple has declined to comment on the matter and has yet to make a public announcement about its plans for electric vehicles.

CATL is currently the world’s biggest automotive battery maker while BYD is the world’s Number 4. Both companies declined to comment about the negotiations.

US President Joe Biden has proposed a $1.7 trillion infrastructure plan, including a $174 billion budget, to boost the domestic EV market with tax credits and grants for battery manufacturers.

Many battery manufacturers are ramping up production to address the increasing worldwide demand.

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