As per Reuters, Apple‘s talks with Chinese-based battery suppliers CATL and BYD are mostly stalled. According to sources, the issues surround a refusal by CATL and BYD to set up teams and build US plants to cater to Apple.
Both CATL and BYD noted to Apple that they would not meet the requirements as set by Apple. However, as per a source, Apple has not given up hope resuming talks with both companies.
CATL has long been reluctant to build a US-based plant. Not only are tensions between Beijing and Washington at a high, but the costs associated with building and staffing a plant in the US are a concern.
BYD, on the other hand, already has an iron-phosphate battery plant in Lancaster, California. However, they declined to build a new factory and team that solely focuses on supplying Apple.
Apple focused on the Chinese companies as they are more advanced in developing lithium iron phosphate batteries. These batteries are cheaper to produce, and according to sources, Apple prefers this battery technology.
Apple and BYD decline to comment. At the same time, CATL denied ‘the relevant information.