Why Apple's Tie-Up With TDK For Battery Production In India Is A Major Win For Cupertino

This story was first published on the Benzinga India portal.

In a significant stride for its operations in India, Apple Inc. AAPL has announced a collaboration with its global lithium-ion (Li-ion) battery cell provider, TDK Corporation. The Japan-based electronics behemoth will initiate the manufacturing of battery cells in India to power iPhones assembled locally. The commercial production under this partnership is expected to commence within 12-18 months.

TDK Corporation, following the acquisition of Hong Kong-based Amperex Technology Ltd, is in the process of establishing a facility spread over 180 acres in Haryana, India. This strategic move will enable TDK to supply cells to Sunwoda Electronics, Apple's existing Li-ion battery assembler that presently imports cells from global markets.

This manufacturing plant is not just about ramping up production; it also stands to be a significant employment generator. It is projected to provide direct jobs to 8,000-10,000 people and indirectly support over 25,000 jobs.

See Also: Spotify's New Podcast Monetization Method Could Be A Game-Changer For Podcasters: Here's Why

Rajeev Chandrasekhar, India's Deputy Minister for Information Technology, shared the news on social media platform X, formerly Twitter.

TDK Corporation has not officially confirmed the partnership. However, Fumio Sashida of TDK’s leadership team had discussions with the Ministry of Electronics and Information Technology (MeitY) officials in India in October last year. This collaboration aligns with Apple's strategy to decrease its dependence on China for battery cells and increase the domestic value addition (DVA) of iPhones assembled in India.

Currently, the DVA of iPhones assembled in India stands between 12% and 15%. Apple is constantly seeking ways to boost local supply chain contributions. With TDK, which controls over 60% of the global Li-ion cell market, entering the Indian market, this is a crucial step towards that goal.

This partnership represents a key milestone for Apple in diversifying its supply chain, as the tech giant is gradually moving away from Chinese vendors towards local and other Asian suppliers amidst escalating geopolitical tensions.

Read Next: Amazon India's Top Brass Said To Be Shuffled Around In Major Rejig