Hyundai Confirms Apple is Building a Self-Driving Car

In a recent Reuters report claimed that Apple, apart from having already started building its own cellular modem for future devices, is also planning on building a self-driving car for consumers and is targeting 2024 to produce the vehicle. This product has been in development for a while now under the codename Project Titan.

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The electric vehicle is said to be half a decade away from launching. However, this means, Apple is actively searching for components for its next product, the Apple Car. Now, Hyundai Motor has confirmed that it is in early discussions with Apple after Korea Economic Daily TV reported that the two were in talks to cooperate on electric cars and batteries.

Shares of Hyundai Motor surged 19% after the South Korean automaker said it was in early-stage talks with Apple over potentially working together to develop an electric car.

Lee Han-Joon, an analyst at KTB Investment & Securities Co. in Seoul commented;

“Apple is likely to be looking at partners since it doesn’t have production capabilities and sales networks to sell its cars. Building up those capabilities can’t be done quickly so Apple will need a partner for that. Hyundai is said to provide Apple with a partner that’s already accelerating a push into electric and driver-less cars.”

“Apple outsourcing car production to Hyundai makes sense, because (the Korean firm) is known for quality,” said Jeong Yun-woo, a former designer at Hyundai.

A representative from Hyundai Motor on an interview with CNBC said;

“We understand that Apple is in discussion with a variety of global automakers, including Hyundai Motor. As the discussion is at its early stage, nothing has been decided,”

Hyundai later released an updated statement that avoided the mention of Apple and said, “We’ve been receiving requests of potential cooperation from diverse companies regarding development of autonomous driving EVs, but no decisions have been made as discussions are in early stage.”

Shares of Hyundai Motor and its affiliates popped in South Korea.

Hyundai Motor rose 19.42%, Hyundai Wia added 21.33%, Hyundai Mobis gained 18.06% and Hyundai Glovis was up 0.75%. Shares of Hyundai affiliate Kia Motors, which is the second-largest automobile manufacturer in South Korea, surged 8.41%.

The news came following a report from the Korean Economic Daily, which reports that Apple approached the car manufacturer to propose the deal, which would develop both an electric vehicle as well as rechargeable batteries. It is claimed that Apple’s Project Titan, will see a battery produced that could “radically” reduce costs while increasing the vehicle’s range.

Previous reports have suggested the company will use a “monocell” battery design that allows more active material to be contained, and therefore let the car drive further on one charge. “If there is one company on the planet that has the resources to do that, it’s probably Apple. But at the same time, it’s not a cellphone,” a former Project Titan employee said.

It is possible that the development of Apple’s electric car will start in 2024, although the effects of the coronavirus pandemic could push that back to 2025.