Benzinga | Jan 13, 2022 11:42AM EST

Efforts To Snag Apple Car Supply Chain Opportunities Lead To Formation Of Task Forces In South Korea

Some Korean suppliers have reportedly created Apple Car task forces after meeting with Apple Inc (NASDAQ:AAPL) last month.

What Happened: The focus of Apple's Korean visit seems to be batteries for the rumored electric vehicle.

The Tim Cook-led company is reportedly working on custom-designed batteries instead of using existing power packs, 9to5Mac reported, citing local Korean media.

After Apple visited the East Asian nation to meet with companies with experience in mass production and those interested in the manufacturing of electronic parts, some companies formed a "Task Force" and are actively responding, as per a 9to5Mac report, which cited Korea IT News.

The Korean parts industry "has started a war" to enter the supply chain management of the so-called "Apple Car."

"Apple is expected to complete the selection of an Apple Car supplier within this year, and start its full-scale development. Apple is highly interested in South Korean companies in the field of its core parts," as per the report.

The iPhone maker was reported to be "actively seeking for South Korean companies" in the battery sector where it has set up a policy to develop and manage the Apple Car battery materials directly.

See Also: How To Buy Apple (AAPL) Shares

Why It Matters: Apple even proposed equity investment in a Korean electronic parts manufacturer and demanded that the company ramp up parts production capacity by two-folds, according to Korea IT News.

Korean battery manufacturers such as LG Energy Solutions already supply batteries to existing Apple EV rivals such as Tesla Inc (NASDAQ:TSLA) and Volkswagen AG (OTC:VWAGY). That company is eyeing a massive initial public offering.

Last year, Apple was rumored to be in discussions with Hyundai Motor Co. and its subsidiary Kia Motors Corp. about building an electric car but the talks were halted.

The tech giant was reportedly upset after Hyundai announced it was in talks to join the car project.

Price Action: On Wednesday, Apple shares closed nearly 0.3% higher at $175.53 in the regular session. The shares declined 0.2% in the after-hours trading.

Read Next: Apple Continues To Bleed Talent As Microsoft Snags Up Key Chip Architect