The Apple Car Team Travels to South Korea to Discuss Critical Partnerships

It appears that Apple is still looking to the South Korean automotive industry in its attempts to build the Apple Car, with the company said to have recently engaged in talks with several Korean EV component manufacturers.

According to The Korea Times, an industry source said that several Apple officials have been in the country meeting with several potential suppliers, including LG, SK Group, and Hanwha, although the talks are said to still be in the early stages.

There are also rumours that Apple has had “advanced” meetings with SK Innovation, which is the arm of SK Group that makes EV batteries, along with LG Electronics. However, representatives from both companies said that “it is hard to confirm whether such meetings occurred.”

These latest moves suggest that Apple is continuing to focus on South Korea as the hub of its Apple Car efforts, likely preferring to source components and manufacturing prowess from that country as opposed to the potentially more volatile Chinese supply chain.

Notably, however, Apple has been leaning toward using newer lithium iron phosphate (LFP) batteries due to their improved safety, since they’re less prone to overheating and cost less than the more traditional lithium-ion cells.

Perhaps more significantly, though, is that Korean battery firms remain focused on lithium-ion cells, and don’t (yet) produce LFP batteries. Instead, these come primarily from mainland China, which suggests that Apple may still have to source at least some of its Apple Car components from there.

Last year, LFP batteries from China accounted for 47 percent of the entire EV battery market.

Will the Apple Car Be Made in the USA?

Despite Apple’s junket to South Korea, there’s still every indication that the actual Apple Car will be assembled at a plant based in the U.S. Recent talks are more about sourcing components for the Apple Car from Korean automotive makers than looking for a manufacturing partner.

In fact, even though Apple has reportedly held talks with South Korean automaker Hyundai, that was with the objective of building the Apple Car at its Kia facility in West Point, Georgia. While the solution seemed like a win for both companies in many ways, Hyundai’s execs reportedly agonized over the decision, fearing that their brand identity would be eclipsed by Apple. In the end, the talks came to a screeching halt, and Apple was forced to look for partnerships elsewhere.

However, this hasn’t necessarily ruled out Apple’s use of Hyundai’s high-performance E-GMP platform, which lines up with the current report that Apple is still pursuing relationships with South Korean automakers to lock down all the pieces that will be necessary to build a full electric vehicle.

Apple also approached Japanese automaker Nissan, which offered similar manufacturing options, having over-expanded in the U.S. with spare capacity to fill. However, those talks ended before they even really began, with Nissan making it clear that it had no interest in making vehicles under any brand but its own.

This left Apple turning to less traditional carmakers — those who had become accustomed to existing in the shadows and building key components for bigger names. In the process, it found LG Magna e-Powertrain, a joint venture between South Korea’s LG Electronics and Canada’s Magna International — the latter of which was one of Apple’s potential partners early on.

While most folks have never heard of Magna International, the Toronto-based company has decades of experience in building traditional automotive components, although Apple may have dismissed a partnership back in 2016 due to Magna’s relative lack of experience in building electric vehicle components.

This is where LG Electronics comes in, however, since it’s able to deliver much of the more modern technology expertise, while Magna offers the general automotive experience. The new combined LG Magna e-Powertrain business could end up being the perfect fit to build the Apple Car.

After all, the LG Group already has a strong existing relationship with Apple. LG Display has been supplying the company with iPhone screens for years, and LG’s UltraFine Displays became the screens of choice after Apple discontinued its Thunderbolt Display several years ago.

Meanwhile, although Magna is headquartered just outside of Toronto, Canada, it boasts 342 manufacturing operations across 27 countries, including 56 manufacturing and assembly plants, 11 engineering groups, and 24,875 employees in the U.S. alone. This means it’s more uniquely positioned than just about any other automotive company to fulfill Apple’s goal of manufacturing the Apple Car in the United States — especially at a time when the Biden Administration is offering incentives to revitalize domestic EV manufacturing.

[The information provided in this article has NOT been confirmed by Apple and may be speculation. Provided details may not be factual. Take all rumors, tech or otherwise, with a grain of salt.]