Singapore's Lianhe Zaobao website reported recently that APPLE's talks with China's Ningde Times and BYD over the supply of batteries for its planned electric cars have largely stalled because they refuse to set up an exclusive team and build a factory in the US simply to serve Apple.
Sources said the companies informed Apple sometime in the past two months that they could not meet its demands, New Media reported, citing Reuters. But Apple has not given up hope of resuming talks with Either Ningde or BYD, according to one of the sources.
Chinese battery makers are believed to be more advanced than rivals in developing lithium iron phosphate (LFP) batteries, which are cheaper to produce. Sources have previously said Apple favors the battery technology.
One of the people with direct knowledge of the negotiations said Ningde Times had been reluctant to build a factory in the U.S. The company is the world's largest maker of batteries for electric cars.
Ningde times also found it impossible to set up a separate product development team to work exclusively with Apple because of difficulties finding enough manpower, the person added.
Byd declined to build a new factory and team and focused solely on supplying Apple, the sources said. Byd has an iron phosphate battery plant in Lancaster, Calif.
They added that the stalled talks meant Apple had been looking at Battery makers in Japan, where it sent a group of people this month.
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