LG Electronics and Magna International are purportedly ‘very near’ to signing a contract with Apple to build its first electric vehicle, according to the Korea Times. Previously, Apple was in talks to partner with Hyundai and Nissan but those fell through.
“LG Magna e-Powertrain is very near to signing contracts with Apple under which they could handle the initial volume production of Apple EVs. Contract details are still being discussed,” a source familiar with the issue told The Korea Times, Tuesday.
It’s believed that the production volume of Apple’s first generation EV would be minimal, giving Apple a chance to evaluate marketability. Since Apple already uses LG in its supply chain, it’s likely to encounter fewer supply chain issues.
“Because LG Group affiliates including LG Display, LG Chem, LG Energy Solution and LG Innotek are already included in Apple’s parts supply chain, Apple doesn’t have to worry about any supply chain issues. These LG affiliate are qualified to guarantee production yields and faster delivery of parts needed for Apple EVs.”
LG recently pulled out of the smartphone business and it likely sees the Apple Car as a potential new source of revenue and growth.
“As the LG brand is not that strong in the global EV industry, it needs a pretty competitive reference to show off its transformation efforts. From that standpoint, LG’s bet on the Apple EV is not that bad, and vice versa for Apple,” another source said.
The Korea Times believes Apple could tease a prototype of the Apple Car in early 2024. Please download the iClarified app or follow iClarified on Twitter, Facebook, YouTube, and RSS for updates.
