Apple Looking to Break into Electric Vehicle Market

Benchmark Mineral Intelligence reported that Apple Inc. (NASDAQ:AAPL) is being sued by A123 Systems Inc. (ETR:ALC), a lithium-ion battery producer, for stealing its employees to set up a new battery division. Market watchers believe Apple is doing so in order to break into the electric vehicle sector.

The news outlet states:

The venture, reportedly named Project Titan, has already seen Apple recruit ‘hundreds of employees’ according to the Wall Street Journal.

The law suit filed by A123, signifies intensifying competition in the EV market, as firms seek to establish themselves in the industry ahead of what are expected to be significant growth rates over the coming years.

As these project developments expose a shortage of skilled battery experts in today’s market, attempts by major technology firms to develop battery capabilities increases the potential for tightening supply conditions in raw material markets.

With established producers such as Tesla Motors, Foxconn, LG Chem and Boston Power already developing battery megafactories, the introduction of major new, financially powerful producers, such as Apple, is likely to put significant strain on upstream suppliers.

Click here to read the full Benchmark Mineral Intelligence report.