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Apple drops electric car project with BMW but benefits persist


Apple has been working with the Chinese car manufacturer BYD for years on an electric car project, but Apple recently canceled this project. However, the collaboration between the two companies has contributed to the development of long-range batteries, which laid the foundation for the current technology in use, according to sources familiar with the matter, as reported by Bloomberg.

Apple and BYD, based in Shenzhen, began collaborating around 2017 to build a battery system based on lithium iron phosphate cells. This technology was designed to be safer and have longer range compared to traditional batteries at that time.

While Apple does not own the technology used in BYD’s current Blade batteries, this collaboration highlights Apple’s commitment to producing its own electric car. Apple has been spending nearly a billion dollars annually over the past decade on the car project, which was considered a major anticipated project for the company before its cancellation last February.

The technology developed by Apple in partnership with BYD was largely dedicated to the electric car that was in the design phase, according to sources. As part of this collaboration, Apple engineers provided their expertise in designing advanced battery packs, while BYD contributed its knowledge in manufacturing and its capabilities in using lithium iron phosphate cells, known for their durability and high performance.

While spokespeople for both companies declined to comment on the details of the collaboration, BYD confirmed in a statement that they independently developed the concept of the Blade battery and maintain intellectual property rights to this battery.

BYD’s range of cars currently use the Blade system, which is based on the battery pack design collaboration with Apple, according to sources involved in its development. The seeds of collaboration were planted about a decade ago, when Apple was seeking essential technologies for its project.

BYD engineers presented Apple with preliminary models of the Blade battery, demonstrating the battery’s safety capability and energy storage efficiency. When Apple canceled the car project, it was a rare failure for the world’s most valuable company, but this project that lasted a decade bore fruit in other ways. Apple has benefited from the experiences gained in developing new products, such as the Apple Watch and the neural engine AI processor now found in most of its devices. These efforts have also contributed to strengthening its robotics business.

Despite moving away from the partnership with BYD, Apple continues to study battery systems from other companies, reflecting its evolving strategies in the electric car industry amidst the complex economic challenges of this sector.

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