Apple Inc 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 United States a condition for potential battery suppliers, said two of the sources.
CATL, which supplies major car makers including Tesla Inc, 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.
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.
The U.S. firm 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.