Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Exclusive-Apple's talks with Chinese battery makers CATL and BYD mostly stalled -sources

Stock MarketsOct 22, 2021 11:26
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
3/3 © Reuters. FILE PHOTO: An Apple logo is pictured in an Apple store in Paris, France September 17, 2021. REUTERS/Gonzalo Fuentes/File Photo 2/3

SHANGHAI/HONG KONG (Reuters) - Apple Inc (NASDAQ:AAPL)'s talks with China's CATL and BYD over battery supplies for its planned electric vehicle have been mostly stalled after they refused to set up teams and build U.S. plants that would solely cater to the tech giant, three people with knowledge of the discussions said.

The firms informed Apple sometime in the past two months that they were not able to meet its requirements, the people said. But the U.S. company has not given up hope of resuming talks with either CATL or BYD, according to one source.

Chinese battery makers are more advanced than rivals in the development of lithium iron phosphate (LFP) batteries which are cheaper to produce and sources have previously said Apple favours this battery technology.

CATL, the world's No.1 maker of batteries for EVs, has been reluctant to build a U.S. factory due to political tensions between Washington and Beijing as well as cost concerns, said one of the people with direct knowledge of the talks.

The Chinese firm has also found it impossible to set up a separate product development team exclusively working with Apple due to difficulties in finding sufficient personnel, the person added.

BYD, which has an iron-phosphate battery plant in Lancaster, California, declined to build a new factory and team that would solely focus on supplying Apple, said two of the sources.

The stalled discussions have meant that Apple has been considering Japanese battery makers and it sent a group of people to Japan this month, they added.

Panasonic Corp is one of the companies that Apple is considering, said one of the people.

The sources declined to be identified as the talks were confidential. Apple, BYD and Panasonic declined to comment.

CATL said in a statement to Reuters that it denied "the relevant information".

"We are evaluating the opportunity and possibility of manufacture localization in North America," the statement said, adding that it has a dedicated professional team exclusively for each customer.

Sources told Reuters last year Apple was aiming to launch an electric car by 2024 https://www.reuters.com/article/us-apple-autos-exclusive/exclusive-apple-targets-car-production-by-2024-and-eyes-next-level-battery-technology-sources-idUSKBN28V2PY. Apple has not publicly disclosed its plans.

The stall in discussions comes at a time when U.S. President Joe Biden is seeking to make the United States a powerhouse in electric cars, setting a goal https://www.reuters.com/business/autos-transportation/biden-set-target-50-evs-by-2030-industry-backs-goal-2021-08-05 of having half of all new vehicles sold in 2030 electric.

Any delays in securing battery supplies could further impede EV development for Apple which last month lost the head of its car project, Doug Field, after he decided to return to Ford Motor (NYSE:F) Co.

Tesla Inc, which has been making some of its Model 3 and Model Y cars in China with LFP batteries from CATL, said this week it intended to use that battery chemistry outside China as well.

CATL and BYD use a type of battery pack technology to improve the performance of LFP batteries. Without that, LFP batteries usually offer much shorter driving ranges and lower energy density than the more expensive lithium batteries that use cobalt and nickel.

Exclusive-Apple's talks with Chinese battery makers CATL and BYD mostly stalled -sources
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email