Apple shifting away from Chinese iPhone batteries and toward those produced in India.

    Apple aims to diversify its global supply chain by sourcing iPhone 16 batteries from India. Battery manufacturers like…

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Posted: December 6, 2023

 

 

  • Apple aims to diversify its global supply chain by sourcing iPhone 16 batteries from India.
  • Battery manufacturers like Desay and Simplo Technology are urged to establish or expand production in India to meet Apple’s demand.
  • TDK, a Japanese supplier, is building a plant in India for iPhone battery cells, aligning with the “Make in India” initiative. If successful, Apple plans to increase iPhone battery production in India.

Apple wants to make batteries for its new iPhones in India to diversify its global supply chain and shift production away from China.

According to two sources close to Apple, the world’s most valuable business has advised component suppliers of its desire to purchase batteries for the next iPhone 16 from Indian facilities.

According to three people familiar with the issue, battery manufacturers such as Desay of China have been urged to create new plants in India. In contrast, Simplo Technology, a Taiwanese battery supplier to Apple, has been requested to expand production in India for future orders.

“If everything goes well with iPhone 16 battery supply, Apple plans to move more iPhone battery production to India,” one source close to the business stated.

Separately, an Indian government official said this week that TDK, a Japanese supplier to Apple, was establishing a 180-acre plant in Manesar, Haryana, to manufacture battery cells for Indian-made iPhones. Rajeev Chandrasekhar, minister of state for electronics and information technology, commended Apple, TDK, and local officials on allowing the government’s “goal of deepening electronics manufacturing ecosystem in India” in a post on X.

TDK stated that “it has begun construction of a plant in India for part of the battery production” with intentions to begin in 2025.

Companies like Desay and Simplo package TDK and its competitors’ electric cells into modules and ship them to assemblers like Foxconn.

Amid rising trade tensions between Washington and Beijing, Apple has been attempting to reduce its years-long reliance on China for manufacturing and supply chains.

In recent months, Apple has slowly pushed to expand production in Vietnam and India but has struggled to match the volume, speed, and, in some cases, quality of its Chinese operations.

The recent effort to obtain batteries outside of China meshes with the Narendra Modi government’s “Make in India” manufacturing initiative, which offers tax breaks to firms who invest in mobile phones, batteries, and other selected areas.

Apple’s newest iPhone 15 was manufactured in India and China at factories owned by Taiwanese contract manufacturers Foxconn, Pegatron, and Wistron, which is selling its mobile phone manufacturing near Bengaluru to India’s Tata.

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