SHANGHAI -- Apple is in early-stage talks with China's CATL and BYD about the supply of batteries for its planned electric vehicle, 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 who declined to be named as the discussions are private.
Apple has made building manufacturing facilities in the U.S. a condition for potential battery suppliers, said two of the sources.
A senior official in U.S. President Joe Biden's administration confirmed that condition on Tuesday.
"My understanding is that Apple is talking about building advanced battery production factories here, here in the U.S.," Jared Bernstein, a senior White House economic adviser, told Reuters.
"That is completely consistent with what the president has talked about in terms of on-shoring supply chains particularly in areas where we might grab global market share," he said.
CATL, which supplies major automakers such as Tesla, is reluctant to build a U.S. 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 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.