There has been no progress in Apple Car’s negotiations with Chinese manufacturers CATL and BYD over the supply of batteries. Both companies expressed their refusal to form teams and build factories in the U.S. dedicated to the tech giant.
The companies told Apple over the past two months that they could not meet the demands. However, the U.S. company is still hopeful to resume talks with CATL or BYD, according to a source.
It has previously been reported that Apple favors the lithium iron phosphate (LFP) battery, which is cheaper to produce. Chinese battery makers are further along in developing this technology than their competitors.
CATL, the world’s largest EV battery manufacturer, has been reluctant to build a plant in the U.S. because of political tensions between Beijing and Washington. Furthermore, cost issues are also relevant.
Another problem encountered by the Chinese company was finding sufficient staff to establish an exclusive product development group for Apple.
According to the sources, BYD, which operates an iron phosphate battery factory in Lancaster, California, refuses to build a new factory and team dedicated solely to supplying Apple.
Due to the impasse in discussions, Apple is considering switching to Japanese battery manufacturers. The company will send a delegation to Japan this month. People familiar with the matter say Apple is considering Panasonic Corp.
A 2030 target.
Meanwhile, the Biden Administration is seeking to establish the U.S. as a leader in electric cars. By 2030, the country is aiming to sell half of all new vehicles as electric.
Battery delays could further impede Apple’s EV development, as Doug Field, the head of its automotive project, left for Ford Motor Co (F.N) last month.
This week, Tesla Inc (TSLA.O), which also uses CATL’s LFP batteries in some of its Model 3 and Model Y cars made in China, announced that it would use that battery technology outside China as well.