At the end of February this year $Apple (AAPL.US)$ After nearly ten years of silent development, the mysterious car project that was rumored to have been abandoned has recently been revealed. The latest news indicates that although Apple's car dreams have been shattered, the previous secret research and development efforts may still benefit $BYD COMPANY (01211.HK)$ directly.

On Wednesday, October 16th, Eastern Time, Bloomberg reported, citing sources familiar with the matter, that as part of the electric car project, Apple began cooperating with BYD around 2017 to develop long-range electric vehicle batteries. This research and development laid the foundation for the technology adopted in BYD's current car batteries.

According to reports, the above-mentioned collaboration project between Apple and BYD has never been publicly disclosed. Insiders revealed that the project developed a battery system using lithium iron phosphate (LFP) cell group, with the goal of longer-lasting and safer battery operation compared to commonly used electric car batteries at that time. This project aimed to tailor a long-range battery version for Apple's planned car. During the collaboration, Apple's engineers provided advanced expertise in battery packs and thermal management, while BYD contributed its professional knowledge in battery manufacturing and advancements in using LFP technology.

The report mentioned BYD's blade battery released in March 2020, indicating that about ten years ago, BYD's engineers showcased an early version of the blade battery to Apple executives when Apple was seeking core technology for its car project. The executives appreciated the technology's safety and energy storage capabilities, laying the foundation for the cooperation between the two parties.

Currently, all BYD's vehicle models are equipped with a blade battery system. When BYD introduced the battery in 2020, they stated that this lithium iron phosphate technology battery 'possesses safety standards beyond what other power batteries can achieve, with long lifespan and endurance.' Its creation has redefined the safety standards of new energy vehicles globally, leading to a new level of safety in power batteries.

During the conference, BYD played a video showcasing the performance of the blade battery in the industry's most stringent battery cell safety test method – 'puncture test,' demonstrating that this battery completely eliminates the risk of severe combustion associated with traditional power batteries. Under the same test conditions, ternary lithium batteries showed a rapid and extreme temperature increase exceeding 500°C, leading to severe thermal runaway, where the egg placed on the battery surface exploded. Traditional prismatic lithium iron phosphate batteries, when punctured, showed no open fire but smoke, with surface temperatures reaching 200°C-400°C, causing the egg on the surface to be charred at high temperatures. The blade battery, when penetrated, showed no open fire or smoke, with the battery's surface temperature only around 30°C-60°C, leaving the egg placed on the battery's surface unchanged, still in a liquid state.

Apple and BYD company limited spokespeople both declined to comment on this week's Bloomberg report. BYD stated in an email declaration that the concept of blade batteries originated from BYD engineers, who independently developed this LFP battery. BYD has full ownership and patent rights related to this battery.

The report also stated that Apple does not own any technology used in blade batteries. Nevertheless, the collaboration with BYD still reflects Apple's past efforts to produce autos. Before finalizing the collaboration with BYD to develop custom batteries, Apple reportedly researched various different batteries, utilizing elements such as nickel and alkaline, and invested millions of dollars in battery pack design and engineering, hoping to incorporate as many batteries as possible.

Editor/Somer