Please ensure Javascript is enabled for purposes of website accessibility

Report: Apple in Talks Over Batteries for Apple Car

By Eric Volkman - Jun 8, 2021 at 9:16PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Apparently, the U.S. tech giant is discussing supply deals with a pair of Chinese companies.

Is the Apple (AAPL 2.14%) Car getting closer to realization? According to a report published Tuesday by Reuters, the answer is "yes." In the article, which cited "people with knowledge of the matter," the U.S. tech giant is in talks with at least two Chinese battery makers to manufacture a power supply for its long-rumored autonomous vehicle.

The report's sources identified BYD and Contemporary Amperex Technology as the battery companies currently engaged in the discussions. Both are significant global electric vehicle (EV) battery makers; the latter supplies the current king of the EV hill, Tesla. It is unknown whether Apple is talking to other manufacturers.

Car speeding along a highway.

Image source: Getty Images.

One potential sticking point, according to two of the sources, is Apple's apparent insistence that the Apple Car's batteries be manufactured in the U.S. That could prove a tough sell given the trade tensions between the two nations over the past few years. The high costs and the logistical/managerial challenges of operating a major facility overseas might also be deterrents.

If Apple were to win this concession, the victory would be applauded at the highest levels of government. Having a U.S.-situated factory for the batteries would be, as senior White House economic advisor Jared Bernstein was quoted by Reuters as saying, "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."

Apple has never confirmed the persistent rumors about its development of the Apple Car. Maintaining an admirable consistency, it has not commented on the Reuters story. Neither BYD or Amperex has made an official statement about it, either.

Eric Volkman owns shares of Apple. The Motley Fool owns shares of and recommends Apple and Tesla. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Apple Inc. Stock Quote
Apple Inc.
$172.10 (2.14%) $3.61
Tesla, Inc. Stock Quote
Tesla, Inc.
$900.09 (4.67%) $40.20

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/14/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.