Apple Car: It’s no secret, Apple’s actively working on Car tech

As of early 2021, multiple rumors have suggested that Apple has entered into negotiations with well-known automative electronics suppliers for components for a potential upcoming vehicle-related product, and Apple is also said to be working to establish a production facility in the United States.

Apple was rumored to be cosidering a partnership with Hyundai for manufacturing the Apple Car, with plans to transition the Apple Car development to its Kia brand as part of an arrangement that could see production happen in the United States, but that hasn’t panned out.

Rumors suggested that under the partnership with Hyundai, Hyundai Mobis would be in charge of design and production for some Apple Car components, and Hyundai Group affiliate Kia would provide the U.S. production line for Apple Cars. Hyundai executives were said to be divided over the prospect of a deal with Apple, though Apple planned to invest 4 trillion won ($3.6 billion) in Kia Motors, with Kia set to manufacture the Apple Car in its U.S. facility located in Georgia.

Apple reportedly considered Hyundai-Kia because the deal would give Apple access to an established automaker with the capability to produce vehicles in North America. Hyundai-Kia was also willing to give Apple control over both the Apple Car software and the hardware, with Apple planning for a full Apple-branded vehicle and not a Kia model that included Apple software.

Despite all the rumors of an Apple/Hyundai-Kia partnership, Apple paused the talks and has also been discussing Apple Car plans with other automobile manufacturers. According to Bloomberg, Apple was upset that Hyundai confirmed that it was in talks with Apple even though Hyundai eventually retracted and revised the statement.

Hyundai and its Kia affiliate confirmed in February 2021 that they are not in discussions with Apple to cooperate on the development of a self-driving electric vehicle, so it appears the discussions between Apple and the two car manufacturing companies may have been tabled for now. It’s not clear if the talks will resume, but some Korean media sites do believe that the partnership could survive and Apple could opt to go with Kia.

Apple also allegedly approached Nissan about a potential partnership, but negotiations were brief and did not make it up to executive levels due to disagreements over Apple Car specifics. The two companies clashed over the idea of a partnership, with Nissan worried that Apple would downgrade it to a simple hardware supplier. Apple wants full control over the Apple Car’s design and software, and Nissan has said that it has no plans to change the way that it makes cars. Nissan has since confirmed that it is not in talks with Apple.

According to Apple analyst Ming-Chi Kuo, Apple’s initial vehicle chassis could be based on Hyundai’s E-GMP electriv vehicle (BEV) platform, which uses up to two motors, five-link rear suspension, an integrated drive axle, battery cells that can provide range over 500km on a full charge, and can be charged up to 80% within 18 minutes through high-speed charging. A high performance model based on E-GMP is capable of accelerating from 0-60 miles per hour in less than 3.5 seconds, with a top speed of 160 miles per hour.

Apple may also work with General Motors and European manufacturer PSA for subsequent models or in other markets. Apple’s “deep collaboration” with manufacturing partners will shorten Apple car development time.

Bloomberg’s Mark Gurman has explained that Apple is struggling to find an appropriate existing automaker to build its vehicle and automakers are said to be concerned about the implications of such an agreement on their own brand. As a result, Apple is reportedly looking into contract manufacturers such as Foxconn, which has an existing relationship with the company.

Foxconn is the main assembler of iPhones, and also recently unveiled an electric vehicle chassis and a software platform to help carmakers bring models to market faster. Contract manufacturer Magna is purportedly another possibility, but Apple may also choose to manufacture the vehicle itself.

According to The Korea Times, Apple is “very near” to signing an agreement with LG Magna e-Powertrain. Apple is apparently comfortable with LG Magna e-Powertrain’s smaller manufacturing capacity, from which it may be inferred that the company does not intend to produce the vehicle on the same large scale as other major automakers. Apple’s first-generation of electric vehicles is reportedly seen as an opportunity to evaluate the project’s marketability, rather than a true mass-market vehicle.

If the agreement with LG Magna e-Powertrain is reached, the two parties will then jointly establish the precise details for the production of the Apple car, and a prototype will apparently be teased in early 2024.

Apple in June 2021 entered into “early stage talks” with two Chinese companies that would be able to supply batteries for a future Apple Car. Apple discussed battery options with CATL and BYD, with Apple pushing for the building of manufacturing facilities in the United States. CATL and BYD refused to set up teams dedicated to Apple and plans in the U.S., so talks fizzled out.

Apple may instead be planning to work with Taiwanese manufacturers on batteries that are could be made in the U.S. Taiwan-based Foxconn and Advanced Lithium Electrochemistry both plan to set up factories in the United States that could end up manufacturing batteries for the Apple Car.

Apple in 2021 also sent a team of Apple Car employees to South Korea to meet with LG, the SK group, and others to discuss possible business opportunities related to the Apple Car. Apple is continuing to work to find new partners to join its supply chain for the upcoming vehicle. Apple is pursuing companies who can make lithium iron phosphate batteries, which Korean suppliers mass produce.

Apple in September was rumored to be visiting Toyota as talks to find and secure suppliers continue.

An Apple parts manager in 2020 allegedly told Japanese auto supplier Sanden that Apple was working on an electric vehicle, and he provided Sanden with schematics of an electric car and air conditioner parts. Sanden creates air conditioner parts for vehicles, and the company did hold talks with Apple, but Sanden faced financial troubles because of the ongoing pandemic and the Apple Car talks faded.

Apple representatives also visited South Korea last year to meet with suppliers, and Apple is said to be seeking a number of vehicle electronic parts manufacturers with experience in mass production to provide Apple Car components.

Apple is allegedly working on the chip modules and packages or the autopilot functions of the Apple Car, partnering with an outsourced semiconductor assembly and test company (OSAT) located in South Korea. The project is led by Apple’s regional offices in South Korea.

Existing Apple suppliers are also hoping to produce components for the Apple Car. Foxconn has an EV manufacturing arm and is working on a software platform for carmakers, while Luxshare is working with Chinese automaker Chery to build EVs. Apple isn’t likely to work with either company directly on a car, but they could have key roles in the company’s Apple Car supply chain.

German carmaker Porsche has apparently discussed undertaking joint projects with Apple. The company’s CEO Oliver Blume said in March 2022 that Porsche discussed “exciting common projects” with Apple, but that it was too soon to make any firm decisions on future projects. It is not clear if Blume was referring to something related to the Apple Car or something more like CarPlay.