Apple Looks To Make Batteries For Apple Car In The US: Report

Apple Inc. AAPL is looking to manufacture batteries for Apple Car in the U.S., MacRumors reported Monday, citing a report by DigiTimes.

What Happened: Apple may work with Taiwanese battery makers rather than Chinese manufacturers for its long-awaited self-driving car, as per the report.

Foxconn, one of Apple's largest suppliers, and Advanced Lithium Electrochemistry (Aleees), reportedly stand a chance of working with Apple on the car batteries as they plan to set up plants in the U.S. Both the companies are based in Taiwan.

Apple is looking to diversify its production supply chain for the Apple Car, similar to the approach it has taken for the iPhone, the report noted. The tech giant is in the process of diversifying the production of iPhones to India and Vietnam in a bid to move away from Chinese manufacturing.

See Also: Why Jim Lebenthal Thinks Apple Stock Is Headed To $175 This Year

Why It Matters: It was reported in June that Apple was in talks with China's two largest battery suppliers, CATL and Warren Buffett-owned BYD Company Limited BYDDY, to source batteries for the Apple Car. CATL is the battery supplier for electric vehicle maker Tesla Inc. TSLA.

However, the Chinese companies are reluctant to build their plants in the U.S. due to the frosty relations between the two countries.

Price Action: Apple shares closed 0.4% lower in Monday’s trading session at $144.50.

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