Benzinga | Aug 10, 2021 08:52AM EDT

Apple Car Rumor Resurfaces: Report Says iPhone Maker Met With South Korean EV Component Manufacturers

After remaining dormant for a while, speculation regarding Apple Inc.'s (NASDAQ:AAPL) autonomous vehicle was making the rounds yet again.

What Happened: Apple has made overtures to some South Korean EV component manufacturers, including LG Electronics and SK Group, two separate reports said Monday.

Apple met with LG and SK Group as part of its continued efforts to find partners that are eligible to join the Apple Car supply chain, Taiwan-based Digitimes reported, citing sources. The tech giant is actively scouting for new suppliers and major business partners to help launch its autonomous vehicle, the report added.

A separate report by the Korea Times cited a senior industry executive who said Apple officials have been in Korea for business talks with its partners in the semiconductor and display sectors. Apple team members reportedly met with representatives from SK Group and car component manufacturers in Korea.

The ongoing trade standoff between the U.S. and China may make Apple lean more toward the South Korean companies, the report said. This is despite Apple's preference for lithium iron phosphate batteries, which is the prerogative of Chinese battery manufacturers such as CATL.

Apple may also want to have its battery suppliers operating manufacturing plants in the U.S., keeping in line with the Biden administration's thrust on domestic production and job creation.

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Why It's Important: Apple, which is one of the most profitable companies, is heavily reliant on its flagship product, the iPhone. Venturing into the car business will diversify the company's revenue streams, especially at a time the EV industry is going through fast growth.

Rumors of Apple Car gained ground late last year, and several potential partners were named by the press, although the company did not issue a clarification in this regard.

In early June, reports suggested Apple was in talks with Chinese battery suppliers including CATL and Warren Buffet-back BYD Company Limited (OTC: BYDDF) for procuring EV batteries.

The rumors regarding Apple Car suggest something is moving in that direction, although Tim Cook's team is still tightlipped.

At last check, Apple shares were down 0.21% at $146.12 Monday at publication.

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