Apple (AAPL) collaborated with Chinese automaker BYD Co. (BYDDY) for a long time on a now-canceled car project, according to an exclusive Bloomberg report. The report stated that the partnership between the two companies began around 2017 and was focused on developing a battery system using lithium iron phosphate (LFP) cells. Apple was focused on this battery system as it was looking at creating safer, longer-range batteries compared to what was available at the time.
AAPL Invested $1 Billion Annually in the Project
Apple invested around $1 billion annually over the past decade into the project, once seen as a potential “next big thing,” before ultimately scrapping the initiative in February. Furthermore, the battery technology Apple and BYD worked on was highly customized for Apple’s planned vehicle.
As a part of this partnership, while Apple’s engineers provided the expertise needed for the advanced battery pack design and heat management, BYD provided manufacturing insights for the LFP cells.
BYD Benefited More from this Partnership
While Apple eventually canceled its car project, BYD developed the Blade battery system through the insights it gained through this collaboration. In fact, BYD’s Blade system is now a defining feature of its vehicle lineup.
This is because this battery has an improved range, enhanced safety, and lower cost that has helped BYD sell 3 million electric and hybrid vehicles in 2023, a sharp increase from just 179,054 units three years earlier.
However, BYD told Bloomberg that its Blade battery concept was independently developed by its own engineers. “The concept for the Blade battery originated with BYD engineers, who independently developed this LFP Blade battery. BYD holds complete property rights and patent rights for the Blade battery.”
Meanwhile, for AAPL, its car project was not entirely in vain as the insights gained from the project led to products such as the Vision Pro headset and the Neural Engine AI processor.
What Is the 12-month Price Target for Apple Stock?
Analysts remain cautiously optimistic about AAPL stock, with a Moderate Buy consensus rating based on 23 Buys, 10 Holds, and one Sell. Over the past year, AAPL has increased by more than 30%, and the average AAPL price target of $248.90 implies an upside potential of 7.4% from current levels.
