Apple partner invests in EV production as Apple Car rumors grow

One of Apple’s key supply chain partners has announced that it is getting into the EV market.

As reported by Nikkei Asia, Chinese electronic parts supplier Luxshare Precision Industry has announced a joint venture with the Chery group to develop and manufacture electric vehicles. The company, which currently assembles Airpods for Apple, will get into the EV market in the next three months.

Luxshare will take a 30% stake in the new company, with the rest to be owned by Chery Automobile electric-vehicle unit Chery New Energy, under recently announced plans. The venture is to be established within the next three months with a capitalization of around 1.7 billion yuan ($267 million). Its vehicles will not sport Luxshare’s brand.

Luxshare will not become a carmaker, said its chairwoman, Wang Laichun, on an investor conference call Sunday. It will work with Chery New Energy to develop a service of building good vehicles and aims to become a leading Tier 1 supplier in the world, she said.

While Luxshare is primarily known as one of Apple’s key supply chain partners for AirPods, the company also began assembling iPhones in 2021 and is in the middle of building a new plant to support its partnership with the company.

Apple has long been rumored to be developing Apple Car, the company’s own autonomous electric vehicle. The car is currently anticipated to be announced as soon as 2025 and Apple has been shopping around for supply chain partners to help with parts and assembly for its new vehicle.

Could Luxshare be one of those partners? With its latest announcement, it certainly is a short jump to being one.