Reuters reports that Apple's talks with Chinese companies CATL, BYD and BYD regarding the supply of batteries for its rumored electric car have largely stalled.
Three people who were privy to the discussions between Apple, China and Chinese companies said that the talks ended when CATL/BYD refused to create teams to support Apple and American manufacturing plants. Apple has been reported to be keen to bring some manufacturing of the vehicle to America, with a particular focus on the battery.
Apple is rumored to be looking to lithium iron phosphate (LFP), as a battery material for its electric car. This is partly because it's cheaper than the more expensive lithium batteries that require cobalt or nickel. Chinese battery producers are believed to be the preferred choice for Apple because they have battery pack technology that boosts performance, driving range and energy density.
CATL, the world's largest manufacturer of electric vehicle batteries, supplies Tesla. However, the U.S. has been reluctant to open a factory due to cost concerns and geopolitical tensions. BYD already owns an iron-phosphate battery plant in Lancaster, California. However, they refused to build a new factory to exclusively supply Apple. CATL also believes it impossible to create a product development team that works exclusively with Apple because of insufficient personnel.
Apple was reportedly informed by CATL and BYD several months ago that they weren't willing to comply with these requirements. However, Apple remains hopeful that an agreement can be reached. Apple is being forced to look at Japanese battery suppliers like Panasonic and has sent a team to Japan to investigate this possibility.
The development of the vehicle could be further delayed by difficulties in establishing a supply for batteries. This is despite Doug Field leaving Apple to join Ford. Kevin Lynch, who was responsible for the development of the Apple Watch, is believed to now be the head of the vehicle project.
