A new DigiTimes report claims that Apple could work with Taiwanese companies to build batteries for the Apple Car in the US instead of Chinese suppliers. The report claims that Foxconn or Advanced Lithium Electrochemistry (Alees) are currently in the race to work with Apple to set up factories in the US and build Apple Car batteries.

Apple was initially looking to work with China’s CATL and BYD for manufacturing Apple Car batteries. However, Apple’s requirement of the batteries being manufactured in the US acted as a hindrance for the Chinese suppliers.

Semiconductor and lithium batteries are now considered strategic materials by the US government. Although Chinese-made lithium batteries are known for low costs and high performance, but with the trade war still raging and the potential of its domestic market, Apple wants to produce its Apple Car batteries at home, the sources said.

Apple already has very close ties with Foxconn, which assembles iPhones and other Apple products for the Cupertino company. Given the trade war between the US and China, Apple is likely apprehensive of getting Apple Car batteries manufactured in China or any other part of the world. Over the last year or so, Apple has been diversifying its supply chain and moving it out of the US. It has moved the production of chargers and assembly of older iPhones to Vietnam and India, respectively.

Apple Car rumors have picked up steam since the beginning of this year. Apple was initially rumored to partner with Hyundai-Kia for Apple Car manufacturing, but the talks seemingly fell through after excess leaks. Recent rumors then suggested Apple partnering with LG and Magna for Apple Car production.