Why Apple wants to source iPhone 16 batteries from India

Union minister Rajeev Chandrasekhar has said Japanese electronic parts maker TDK Corp will manufacture lithium ion (li-ion) battery cells for Apple iPhones in India.

Apple has asked its component suppliers that it prefers to source batteries for the upcoming iPhone 16 from Indian factories, the Financial Times reported on December 6. The move aligns with the iPhone maker's strategy to diversify its supply chain and increase dependence on manufacturing capabilities in India.

Battery manufacturers, including Desay from China, have reportedly been encouraged to set up new factories in India. Additionally, Simplo Technology, a Taiwanese battery supplier for Apple, has been urged to expand its production capacity in India to cater to future orders, the report mentioned.

Also Read: Apple looks out for suppliers in India, Japan, Korea to expand manufacturing base

Moneycontrol could not independently verify the report.

Union minister Rajeev Chandrasekhar on December 4 said Japanese electronic parts maker TDK Corp will manufacture lithium ion (li-ion) battery cells for Apple iPhones in India.

“Another big win for PM @narendramodi ji’s visionary PLI scheme in shifting the mobile manufacturing ecosystem to India. TDK, a leading supplier of cells to Apple, is setting up a 180-acre facility in Manesar, Haryana to build cells for batteries which will be used in the #MadeInIndia iPhones," he wrote on micro-blogging platform X (formerly known as Twitter).

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The American tech giant has been actively working to cut its depedence on China for manufacturing and supply chains. The company's efforts to expand its production locations and engage with suppliers in other regions have been driven, in part, by the escalating trade tensions between Washington and Beijing.

In August, Moneycontrol reported that Apple was actively exploring specific strategies to ramp up its local component manufacturing in India. The details of this initiative were shared by the iPhone manufacturer during a meeting with senior officials from the finance ministry.

The tech behemoth has laid out plans to substantially boost its production capacity in India by more than fivefold, reaching an approximate value of $40 billion (around Rs 3.32 lakh crore). The goal is to accomplish this expansion within the next 4-5 years.