Apple Inc. is in early-stage talks with two Chinese manufacturers to supply batteries for its fabled Apple Car, according to an unconfirmed report.

Reuters, referencing four people with knowledge of the matter, reported that Apple has held talks with Contemporary Amperex Technology Co. Ltd. and BYD Auto Co. Ltd. The discussions are said to be subject to change and it’s not clear if agreements will be reached.

CATL is a dedicated battery manufacturer and technology company that along with offices and plants in mainland China also produces batteries in Germany. It is also the world’s largest battery manufacturer. BYD, by comparison, is a significant player in the Chinese automotive industry and manufactures cars, buses, trucks, electric bicycles, forklifts and rechargeable batteries.

As part of any deal, Apple has made building manufacturing facilities in the U.S. a condition for potential suppliers, according to sources who spoke to Reuters. Despite Apple not discussing its Apple Car plans publicly, confirmation of the requirement to make batteries in the U.S. came from the White House.

“My understanding is that Apple is talking about building advanced battery production factories here, here in the U.S.,” Jared Bernstein, a senior White House economic adviser, told Reuters. “That is completely consistent with what the president has talked about in terms of onshoring supply chains particularly in areas where we might grab global market share.”

Onshoring battery manufacturing may be part of a broader push by Apple to make things in the U.S., such as MacBook Pros in Texas, but geopolitical concerns may result in issues. Reuters adds that CATL, which also supplies Telsa Inc., is reluctant to build a factory in the U.S. because of political tensions between Washington and Beijing, as well as cost concerns.

The report that Apple is seemingly holding talks with battery suppliers may indicate that the Apple Car is progressing despite years of speculation. The internal vehicle development program was reported to be dead in the water in 2016 but was then reported in December to be going ahead with a planned date of 2024.

Given its long history of failing to deliver — the project dates back to 2014 — some are skeptical. A report in January claimed that the car is nowhere near the production stage and could take five to seven years to deliver.

Image: automobileitalia/Flickr