Apple seeks Chinese expertise for US battery factory – report

Apple's much-rumoured electric car will be powered by batteries produced in the United States, but could be made with the help of Chinese experts.

According to sources familiar with the matter, Apple has stipulated only US-made batteries will be fitted to its upcoming electric vehicle – echoing regulations being proposed by the US Government.

The technology giant has engaged in talks with Chinese battery companies CATL and BYD, reports news outlet Reuters and confirmed by a White House economic adviser. If true, it would require the winning supplier to manufacture on US soil.

"My understanding is that Apple is talking about building advanced battery production factories here in the US," White House adviser Jared Bernstein told Reuters. 

"That is completely consistent with what the president has talked about in terms of onshoring supply chains particularly in areas where we might grab global market share."

While CATL is the world's largest automotive battery manufacturer, US-based investment firm Berkshire Hathaway – led by billionaire Warren Buffett – owns a 25 per cent stake in BYD. Berkshire Hathaway also owns more than 5 per cent of Apple.

Shares of BYD closed 6.5 per cent higher off the back of the rumoured talks.

In April 2021, rumours out of South Korea suggested Apple was close to finalising an agreement with the newly-formed LG Magna e-Powertrain – a joint venture between Korean electronics giant LG and large Canadian automotive company Magna.

Magna's subsidiary Magna Steyr currently manufactures vehicles for BMW, Mercedes-Benz, and Toyota.

Earlier in the year, Hyundai confirmed Apple had "paused talks", following internal leaks from the Korean car maker which suggested the two companies were preparing to reach an agreement for Hyundai to manufacture vehicles on behalf of Apple.