Apple plans to produce passenger cars or self-developed breakthrough battery technology in 2024

Apple is promoting self-driving car technology and plans to produce a passenger car in 2024 that could include its breakthrough battery technology, according to media reports citing people familiar with the matter.

At the heart of Apple's strategy is a new battery design that can "completely" reduce battery costs and increase vehicle mileage, according to people familiar with the matter.

Apple plans to adopt a unique "Monocell" design that expands individual batteries and frees up space inside the battery pack by eliminating soft packages and modules that hold battery materials. This design means that the battery can be loaded with more active materials, thus increasing the car's mileage.

Apple is also working on a battery chemical called "LFP" lithium iron phosphate, which is inherently less likely to overheat and is therefore safer than other types of lithium batteries.

"this is a whole new height. Just like the iPhone came out for the first time, "a person familiar with the matter said of Apple's battery technology.

Apple shares closed up 1.2% at $128.23 on Monday on the news, after falling 2.5% earlier in the day. The intraday decline of Tesla, the current market leader in electric cars, widened to 6.5 per cent.

Supply chain challenges

It is worth noting that Apple may face supply chain challenges because of its lack of experience in car manufacturing. Tesla (Tesla), owned by Elon Musk (Elon Musk), took 17 years to make a sustained profit.

Apple has decided to acquire components of its autopilot system, such as lidar sensors, from outside partners that can help cars get a three-dimensional view of the road, according to people familiar with the matter. In addition, Apple cars may be equipped with multiple lidar sensors to scan different distances. Some of these sensors may have come from lidar units developed internally by Apple. Earlier this year, Apple's iPhone 12 Pro and iPad Pro were equipped with lidar sensors.

Earlier, it was reported that Apple had held talks with potential lidar suppliers, but was also working on its own sensors.

In addition, contract car manufacturers often require large production in order to make a profit, which will also be a challenge for Apple, a newcomer to the car market.

Apple had previously held talks with Magna International (Magna International Inc) about car production, but the two sides gradually concluded the talks as Apple's plans became unclear, according to a person familiar with the matter.

It is not clear which company will make Apple-branded cars, but sources say the company is expected to rely on manufacturing partners for production.

However, people familiar with the matter added that it was still possible for Apple to narrow its ambitions to autopilot and integrate with cars made by traditional carmakers, rather than producing and selling own-brand cars.

The source also warned that Apple could postpone production until 2025 or later due to delays caused by the novel coronavirus pandemic.

It is worth noting that what Apple wants to build is a personal car for the mass market. This is in stark contrast to competitors such as Waymo, a driverless car company owned by Alphabet. Waymo has built robotic taxis for driverless ride-hailing services.