Analyst Suggests LG Group as a Potential Partner for Apple's Car Project

An analyst at KB Securities Co. wrote in a note Friday that South Korea's LG Group, whose businesses span consumer electronics companies to an electric vehicle battery maker, would make a good partner for Apple Inc. as the US tech giant endeavors to make a clean, smart car of its own.

Kim Dong-Won believes that if Apple wants to sell a new electric car in 2026, it should start shaping its own supply chain next year. This is in reference to a Bloomberg story from earlier this month, which said that Apple has scaled back its ambitious self-driving plans and postponed the car's target launch date by about a year, according to people with knowledge of the matter.

Kim said that there is the potential for a partnership with LG Group, which has a full line-up of EV components.

KB Securities has also commented on a local media report from Thursday, which stated that Apple has proposed working with LG Group. Apparently, LG Group has already started putting together an internal team to work on any potential collaboration – this team would include staff from LG Energy Solution Ltd. (a cell phone manufacturer), LG Electronics Inc. (an auto parts maker), and LG Innotek Co. (a camera-module manufacturer). The report did not name any sources.

A spokeswoman for LG Group denied the report, but did not provide any further details.

There has been speculation that Apple might partner with LG in the future. In 2021, LG Electronics set up a joint venture with Canada’s Magna International Inc. to develop EV parts, while LG Energy Solution makes batteries for Tesla Inc. and General Motors Co. LG Innotek and LG Display Co. are among suppliers for Apple’s iPhone, according to Bloomberg data.

The South Korean conglomerate is seeking to become a “total solution provider for EVs” by supplying various kinds of components, Kim said. This would include not only vehicles, but also subscription and platform services - similar to what Apple offers.

There is speculation that Apple may develop an electric vehicle, due to the slow growth of its smartphone sales. If this is the case, then LG Energy, LG Electronics, LG Innotek and LG Display may all benefit from it.

LG Electronics' stock was up 1.1% in Seoul on Friday, while LG Energy Solution's stock was down 2.8%.