Apple’s secret partnership with China’s BYD: Why is it a big deal?

The recent revelation of Apple’s covert partnership with Chinese manufacturer BYD to create innovative battery technology offers a more thorough look at the company’s electric vehicle (EV) objectives.

Beginning in 2017, the collaboration intended to develop new, safer, and longer-range lithium iron phosphate (LFP) batteries for what was known internally as Apple’s “Project Titan.” After years of substantial investment, Apple abandoned their EV project in February 2024 in spite of these efforts.

The arguments

Is Apple’s EV Vision a Strategic Reorientation or a Lost Opportunity?

Given its long-term commitment and significant financial investment, Apple’s decision to leave the EV market may be viewed as a lost opportunity. However, rather than actively competing in the electric vehicle business, Apple may have positioned itself to revolutionise other markets, like wearables and artificial intelligence, based on the insights gathered from its battery research.

BYD’s Success: Did Apple’s Research Help Build a Competitor?

One may argue that Apple’s cooperation indirectly aided BYD in taking the lead in the EV industry. Apple’s extensive battery design expertise probably helped BYD’s Blade battery, which currently powers millions of EVs. Some would see this as Apple supporting a significant international rival, especially in light of BYD’s recent overtaking of Tesla as the world’s top EV manufacturer.

LFP Batteries and Future Implications

As a result of the affordability and safety of LFP batteries than conventional lithium-ion cells, their invention represents a major advancement in EV technology. Despite leaving the EV competition, Apple’s contribution to LFP technology may have long-term implications for BYD and the larger EV market if these batteries become more popular in the sector.

Final Thoughts: What’s Next for Apple?

Even if the Apple-BYD partnership was unable to create an electric vehicle, it demonstrated Apple’s dedication to developing cutting-edge technology. It’s unclear if Apple will go back into the EV market. Its emphasis on heat management and battery technology, however, suggests a persistent interest in cutting-edge energy solutions, which may spur developments in other fields like smart gadgets or renewable energy.

The facts

The purpose of Apple’s “Project Titan” was to create an electric car, a project that the computer giant actively pursued for more than ten years. An important turning point in this initiative was the collaboration with BYD, one of China’s top automakers, the report by Bloomberg noted.

Focus on Advanced Battery Technology: The creation of a longer-range, safer battery system using lithium iron phosphate (LFP) cells was the main goal of the partnership. Compared to conventional lithium-ion batteries, this kind of battery is more stable and less likely to overheat, making it a significant advance for the electric vehicle market.

Apple and BYD’s Contribution: BYD offered its vast manufacturing and LFP technology experience, while Apple contributed its proficiency in creating cutting-edge battery packs and heat management systems. The partnership informed the development of BYD’s now-famous “Blade” battery pack design.

Financial Commitment: Prior to opting to terminate Project Titan in early 2024, Apple was reportedly investing about $1 billion a year in it. The project never progressed to a point where it could be commercialised, even with this enormous investment.

Collaboration’s Ongoing Effect: Despite Apple’s abandoned EV plans, the insights gleaned from the BYD partnership have not been wasted. According to reports, Apple has used similar insights in other devices, such as the Neural Engine AI processor and the Vision Pro headset.

Since then, BYD has made the most of its Blade battery technology and grown quickly to become a significant force in the global EV market. By 2023, it briefly overtook Tesla as the biggest seller of EVs worldwide and made a name for itself as China’s leading automaker.