According to four people familiar with the matter, Apple is in preliminary negotiations with CATL and BYD on the supply of batteries for electric vehicles it plans to produce.

According to Reuters, an anonymous person pointed out that the negotiations may change, and it is not clear whether Apple will reach an agreement with CATL or BYD.

Two of the sources said that Apple has established a production facility in the United States as one of the conditions for potential battery suppliers. However, the Ningde era is reluctant to build a factory in the United States because of the political tension between China and the United States and concerns about costs.

"Apple favors the use of lower production cost lithium iron phosphate batteries because they use iron instead of the more expensive nickel and cobalt." The person familiar with the matter said.

It is reported that Apple has been developing autonomous driving technology and plans to produce a passenger car in 2024. People familiar with the matter previously said that the electric car Apple plans to launch may include its breakthrough battery technology. It is not clear whether the negotiations with CATL and BYD involve Apple’s own technology or design.

The report pointed out that the discussion comes at a time when the US government hopes to attract more electric vehicle manufacturing. The US$1.7 trillion infrastructure plan proposed by US President Biden includes a budget of US$174 billion to promote the US electric vehicle market through incentives such as tax credits and grants to battery manufacturers.