According to four people familiar with the matter, Apple IncThe company is in preliminary talks with China's Ningde Times and BYD on the battery supply of its planned electric vehicles.

The people, who spoke on condition of anonymity, said the negotiations could change and it was not clear whether Apple Inc would reach an agreement with Ningde or BYD.

But Apple Inc has set up production facilities in the US as a condition for becoming a battery supplier, which could be unacceptable to Chinese companies, according to two of the people. It is not clear whether Apple Inc is also in talks with other battery makers.

Apple Inc prefers lithium iron phosphate batteries with lower production costs because they use iron rather than more expensive nickel and cobalt, according to four people familiar with the matter.

It was reported in December that Apple Inc had been working on self-driving technology and planned to produce a passenger car in 2024.

People familiar with the matter have previously said Apple Inc's planned electric car could include its groundbreaking battery technology. It is not clear whether the negotiations with Ningde era and BYD involve Apple Inc's own technology or design.