Apple is making a significant move in India by partnering with its global lithium-ion (Li-ion) battery cell supplier, TDK Corporation. The Japan-based electronics giant will start manufacturing battery cells in India to power locally assembled iPhones. This collaboration is expected to kick-start commercial production within 12-18 months, bringing a major boost to Apple’s Indian operations.

What Happened? TDK, after acquiring Hong Kong-based Amperex Technology Ltd, is setting up a facility in Haryana, spanning 180 acres. This strategic setup will supply cells to Apple's existing Li-ion battery assembler, Sunwoda Electronics, which currently imports cells from various global markets.

This new manufacturing unit is not just about enhancing production; it’s also a significant job creator, potentially offering direct employment to 8,000-10,000 individuals and indirectly supporting over 25,000 jobs.

The news was also shared by Deputy Minister for Information Technology Rajeev Chandrasekhar on social media platform X, formerly known as Twitter.

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More wins for Apple: While TDK Corporation hasn’t officially commented on this partnership, Fumio Sashida of TDK’s leadership team had discussions with the Ministry of Electronics and Information Technology (MeitY) officials in India last October. This move comes as Apple seeks to reduce its reliance on China for battery cells, aiming to improve the domestic value addition (DVA) of iPhones assembled in India.

Currently, the DVA in Indian-assembled iPhones ranges between 12% to 15%, with Apple continuously exploring ways to enhance local supply chain contributions. TDK's entry into the Indian market, controlling over 60% of the global Li-ion cell market, is a pivotal step in this direction.

For Apple, which is gradually shifting from Chinese vendors to local and other Asian suppliers, this deal marks a crucial step in diversifying its supply chain amidst rising geopolitical tensions.

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