Apple Secretly Worked With China’s BYD on Long-Range EV Battery

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(Bloomberg) — Apple Inc . worked with Chinese car manufacturer BYD Co. years as part of its now-cancelled car project, it developed long-range batteries that helped lay the foundation for the technology used today, according to people familiar with the situation.

Apple and the Shenzhen-based company teamed up around 2017 to develop a battery system using lithium iron phosphate cells, said the people, who asked not to be identified because the effort has not been disclosed. The technology was designed to be longer range and safer than standard electric car batteries at the time.

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Although Apple does not have the technology used in BYD’s current Blade batteries, the partnership shows how far the iPhone maker has come in its efforts to produce a car. The tech titan spent nearly $1 billion a year over the past decade on the automotive project — often seen as one of the company’s “next big things” — before scrapping it in February.

The technology developed by Apple with BYD would be the most customized car ever designed, according to the people. As part of the secret partnership, Apple engineers have delivered advanced battery pack technology and thermal management, they said. BYD has contributed knowledge and development of manufacturing using lithium iron phosphate cells – better known as LFP.

Apple and BYD spokespeople declined to comment on the joint battery project. But BYD said in an emailed statement that “the idea for the Blade battery came from BYD engineers, who independently developed the LFP Blade battery. BYD has full territorial rights and patents for the Blade battery. “

Today, all of BYD’s vehicle lineup is powered by the Blade system, which uses a battery pack design that the people involved in its development say is inspired by lessons from Apple’s work.

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The seeds of Apple’s BYD collaboration were planted almost a decade ago, when the American company wanted the basic technology for its car. BYD engineers previewed earlier versions of the Blade battery to Apple executives, who were interested in the technology’s safety and energy storage capabilities. Apple ultimately sought customization that could improve the EV range, the people said.

At that time, the Cupertino, California-based Apple was already working on several different batteries, using elements such as nickel and alkaline. It also invested millions of dollars in battery pack design and engineering to fit as many cells as possible. The two companies wanted to combine separate packaging and mobile efforts to produce a safe, long-range battery system for Apple’s car.

On Apple’s side, the tie-up was led by Alexander Hitzinger, former CEO of Volkswagen AG and Porsche who oversaw the product development of the automotive project from 2016 to 2019. battery startup A123 Systems LLC worked at Apple from 2014 to 2020.

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Ijaz oversees a team of about 50 battery engineers working on the project. His colleague at BYD was Michael He, vice president of the company’s battery business.

The Blade is now a signature part of BYD cars – and a huge selling point. The company used its improved range, improved safety and lower costs to generate sales of 3 million electric and hybrid vehicles by 2023, up from 179,054 three years ago.

It is now the largest company in China by sales and has narrowly surpassed Tesla Inc. to become the leading seller of EVs worldwide. BYD founder and Chairman Wang Chuanfu, a battery engineer himself, is a billionaire.

Despite years of working with BYD, Apple backed away from the relationship and looked at plans from other battery makers, the people said. The overall automotive project had many delays, and the economics of the EV business ended up proving very difficult.

When Apple canceled the car project, it marked a rare setback for the company’s most important profile in the world. But the decade-long effort has proved useful in some ways. Beyond the battery information gained from the efforts, it helped with the development of products such as the Vision Pro headset and the Neural Engine AI processor that is now found in many Apple devices. The work also contributes to the company’s push into robotics.

—Courtesy of Danny Lee.

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