Apple has faced major challenges while planning to launch its first electric vehicle. The main sticking point is that Chinese battery makers CATL and BYD refuse to set up teams and build US factories that would exclusively supply Apple.
The refusal of China’s manufacturers to cooperate with the United States can be attributed primarily to heightened tensions between Beijing and Washington. Besides, the talks between the tech giant and the Chinese companies have stalled due to cost concerns. CATL is reluctant to build any factories in the US, while BYD already has a battery plant in California and it is not ready to solely focus on Apple. Thus, problems with battery supplies could further impede EV development for the US firm.
Apple is currently making every effort to resume negotiations. The tech giant will try to convince the Chinese manufacturers to consider potential options for cooperation as they are more advanced than rivals in the development of lithium iron phosphate (LFP) batteries. Their production technology makes it possible to significantly reduce the total cost of an electric vehicle. That is why their products are very popular worldwide. As an alternative, the US corporation is considering Japanese battery suppliers, in particular Panasonic. Moreover, Apple has already sent its representatives to the Asian country.
