APPLE Inc. is in early-stage talks with China’s Contemporary Amperex Technology Co. (CATL) and BYD Co. about the supply of batteries for its planned electric vehicle (EV), four people with knowledge of the matter said.

The discussions are subject to change and it is not clear if agreements with either CATL or BYD will be reached, said the people.

Apple has made building manufacturing facilities in the United States a condition for potential battery suppliers, said two of the sources.

CATL, which supplies major carmakers including Tesla Inc., is reluctant to build a U.S. factory due to political tensions between China and the United States as well as cost concerns, the two people said.

It was not immediately clear if Apple is also talking to other battery makers.

Apple, which has yet to make a public announcement about its car plans, declined to comment. CATL, the world’s biggest automotive battery maker, and BYD, the world’s No. 4, also declined to comment.

Apple is in favor of using lithium iron phosphate batteries that are cheaper to produce because they use iron instead of nickel and cobalt which are more expensive, the four people said.

It has been working on self-driving technology and has targeted 2024 for the production of a passenger vehicle, Reuters reported in December.

People familiar with the matter have previously said Apple’s planned EV could include its own breakthrough battery technology. It was not immediately clear if the discussions with CATL and BYD involved Apple’s own technology or designs.

The discussions come at a time when the U.S. government is looking to attract more EV manufacturing. U.S. President Joe Biden’s proposed US$1.7 trillion infrastructure plan includes a US$174 billion budget to boost the domestic EV market with tax credits and grants for battery manufacturers, among other incentives.

Many battery makers are ramping up production to meet soaring worldwide demand as carmakers accelerate their shift to electric vehicles to comply with tougher emission rules aimed at tackling global warming. (SD-Agencies)