Apple Car battery negotiations are declining due to Apple’s demands

Apple Car battery negotiations are declining due to Apple's demands

Two of the three prospective Apple Car suppliers are said to be having trouble meeting Apple’s production demands. According to a new source, the primary stumbling point is Apple’s inability to manufacture advanced lithium ion phosphate (LFP) batteries in the United States, as well as the work required to get exclusivity.

CATL is a Chinese firm, which is said to be complicating matters. It reportedly had difficulty sourcing appropriate staff in the US suitable to assembling a product development team just for Apple.

The report on Friday morning from Reuters claims that the companies told Apple at some point in the last two months that they were not able to meet Apple’s requirements.

BYD has a plant in the US already, seemingly making it a better choice. However, the company allegedly said to Apple that it would not build a plant just for the Apple Car.

Story Highlights

  • Apple’s attempt to have two battery manufacturers build operations specifically for the Apple Car failed, leaving just a glimmer of hope that they will restart.

  • Suppliers cited in the report are BYD and CATL. CATL is the world’s main battery manufacturer for electric vehicles.

Since both manufacturers told Apple that they would not be able to meet demands, talks have stalled. Both companies, however, are said to remain open to overtures from Apple.

A representative from CATL issued a statement about the report to Reuters. In its statement, it said that it is “evaluating the opportunity and possibility of manufacture localization in North America.” Historically, the company has spun off a dedicated team for each customer.

Apple has been developing vehicular systems since 2014. At the time, it was developing its own physical passenger vehicle.