Rumors of Apple’s intentions to introduce electric vehicles under its own brand have been around for a very long time, and in recent months they have already sorted out a decent number of automakers as possible partners. Now it’s the turn of the battery manufacturers. Sources say that Chinese companies CATL and BYD will supply batteries for Apple’s electric vehicles.
Reuters disseminates the relevant information with reference to its own informed sources. Apple is reportedly in the early stages of negotiations with CATL and BYD. The first is the largest supplier of traction batteries globally, and the second is the fourth. Apple is expected to seek iron phosphate cathode batteries, which are being produced in large quantities by Chinese manufacturers. One of the conditions for cooperation in the construction of an enterprise in the United States, which Chinese manufacturers are in no hurry to acquire due to tensions between the two countries.
CATL already supplies Tesla with its iron phosphate batteries in more electric vehicles with a relatively short range. Low energy storage density is one of the disadvantages of batteries of this type, but they are less susceptible to fire, have a longer resource, and are corny cheaper. Another drawback can be considered a decrease in capacity at negative temperatures – when parked in the cold, an electric car can lose up to a third of its power reserve, even if part of the charge will be restored with subsequent warming up.
It is quite natural that none of the representatives of the three companies began to comment on the rumors of cooperation. Still, CATL shares on the Shanghai stock exchange rose in price by 0.5% after the previous fall, and BYD securities became 5.4% more expensive in Hong Kong and 6.5% in Shanghai.
Rumors have credited Apple with intending to introduce the first electric vehicle in 2024. In battery technology, the company also has its own experience, but it is still difficult to judge whether it will be ready to share them with Chinese contractors. In theory, the “intermediary” could be a contract manufacturer Foxconn, which has extensive experience working with Apple and demonstrates ambitions in the electric vehicle market. CATL intends to build another traction battery manufacturing facility close to Tesla’s Shanghai factory.