Apple Inc (AAPL: NASDAQ) is in early-stage talks with Chinese battery suppliers Contemporary Amperex Technology Co Ltd (CATL) and BYD Co. Ltd., about supplying batteries for its electric car, four sources familiar with the matter said, according to Reuters.

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

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 car makers including Tesla, is reluctant to build a US factory due to political tensions between Washington and Beijing 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.

The US firm is in favour 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.

Source: https://www.reuters.com/world/china/exclusive-apple-talks-with-catl-byd-over-battery-supplies-its-electric-car-2021-06-08/