Thursday, May 26, 2022
News Apple Struggling to Find Suppliers for Apple Car

Apple Struggling to Find Suppliers for Apple Car

Apple has trouble finding a source for EV batteries

  • Apple decided to develop and build its car alone

  • Talks with parts suppliers are leading nowhere

  • The company’s expectations might be too high for some partners

Apple has been working on its car project for a number of years now and not a lot of progress seems to have been made.

Earlier this year, talks with numerous automakers have been unsuccessful, which led Apple to decide to go ahead on its own for the development and production of its vehicle.

This means that Apple had to talk to automotive component suppliers directly, and this doesn’t seem to have gone over well.

Indeed, talks with CATL and BYD, two Chinese companies who make EV batteries, among other products, have been held for a few months but the companies failed to reach an agreement.

Reportedly, this could be due to Apple’s requirements being too impractical for the suppliers to adhere to.

The American tech company supposedly insists on using lithium iron phosphate batteries made in the United States for its car. These batteries are cheaper than the more conventional lithium-ion units and Chinese manufacturers seem to be able to make better use of this technology.

What makes it more complicated is that Apple insists on having a factory dedicated to itself for the production of batteries.

CATL is the world’s leading manufacturer of EV batteries and it supplies Tesla, but it has decided against building a factory in the US due to geopolitical concerns as well as the astronomical costs involved in such a project.

BYD, on the other hand, already has a battery production facility in California, but it refused to build another one in order to supply Apple exclusively.

Apple is now obligated to talk to other battery makers like Panasonic, but it might have to review its requirements if it wants to secure battery supply for its car project in short order.

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