Korean enterprises: Breaking the scalp into the Apple car supply chain

According to South Korea's ETNews, Apple is selecting suppliers for its long-rumored electric vehicles.

Following an initial visit in the summer of 2021, Apple representatives visited South Korea last December to meet with local suppliers. In particular, Apple is said to be looking for some automotive electronic component manufacturers with experience in mass production to provide core components for cars.

Apple's interest in South Korean manufacturers has allegedly led to a fierce battle to secure a foothold in Apple's supply chain, and some suppliers are said to have set up a "task force" to respond positively to Apple's requests. Apple has offered at least one local electronic component manufacturer an equity investment in exchange for doubling production capacity, the sources said.

Allegedly, as the discussion was still in its early stages, the supplier did not receive exact information on the vehicle's specifications. Even so, suppliers are said to be aware of the need to keep Apple's car projects secret, and they fear that leaking information could lead to the company being excluded from the supplier shortlist.

Apple is reportedly particularly interested in South Korea's battery manufacturing capabilities and has discussed electric vehicle batteries with LG and SK. Apple allegedly insists on directly developing and producing Apple car battery materials and demands strict confidentiality. Some vendors have turned down the opportunity to work with Apple because it requires a high degree of control.

After initiating face-to-face contact with some suppliers, Apple plans to continue the discussion through an online meeting. Apple is expected to complete its selection of automotive suppliers by the end of 2022, followed by full development, public announcements and mass production over the next two to three years.

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