Technology giant Apple Inc is said to be in early-stage talks with China’s CARL and BYD on the matter of the supply of batteries for its planned electric vehicle.
The discussions can further change and it is therefore unclear whether the 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.
CATL, a supplier of major car makers including Tesla Inc, is not willing to build a US factory due to political tensions between Washington and Beijing as well as cost concerns.
Shares in BYD extended gains on the news to be up 5.4% in Hong Kong in late afternoon trade and closing 6.5% higher in Shenzhen. CATL reversed earlier losses to finish 0.5% higher.
Apple, which is planning to make electric cars, 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.
The company has been working on self-driving technology and has targeted 2024 for the production of a passenger vehicle.
Few reports suggest that Apple`s planned EV could include its own breakthrough battery technology.
The discussions come at a time when the US government is looking to attract more EV manufacturing. US 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.
