China’s BYD Co. BYDDF BYDDY, Tesla Inc.’s TSLA biggest electric vehicle rival, has quietly become a major force in Apple Inc.’s AAPL manufacturing ecosystem, now assembling more than 30% of iPads while planning an ambitious artificial intelligence venture with Nvidia Corp. NVDA.

What Happened: The Shenzhen-based company, which surpassed Tesla in quarterly revenue for the first time with $28 billion versus Tesla’s $25 billion in the third quarter of 2024, has dedicated approximately 100,000 employees to Apple’s supply chain, reported The Wall Street Journal.

This partnership, which began around 2009, has evolved from basic component processing to crucial assembly operations.

Apple CEO Tim Cook acknowledged the significance of Chinese manufacturers during his November Beijing visit, his third this year, stating, “We could not do what we do without them.” The relationship has deepened despite U.S. efforts to reduce dependency on Chinese manufacturing.

Beyond iPad assembly, BYD has secured critical roles in iPhone production, including manufacturing titanium frames for the latest Pro models.

The company’s precision manufacturing capabilities extend to both automotive and consumer electronics, with BYD Chairman Wang Chuanfu leveraging this dual expertise to forge partnerships with other tech giants like Xiaomi and Huawei.

See Also: Apple Partnership, AI Agents, And Major Infrastructure Investments: OpenAI Executives Outline Strategy To Attract 1B Users By 2025

Why It Matters: The company’s automotive division continues to show strong growth, with November 2024 sales reaching 506,804 new energy vehicles, a 68% year-over-year increase. This success in both sectors has positioned BYD for its next venture: developing AI-powered manufacturing robots in collaboration with Nvidia.

Previously undisclosed details reveal that BYD and Apple’s relationship included a secretive partnership starting in 2017 to develop long-range electric vehicle batteries, though Apple has since abandoned its automotive ambitions. The collaboration influenced BYD’s current Blade battery system, now used across its entire vehicle lineup.

Warren Buffett‘s Berkshire Hathaway, an early BYD investor since 2008, has witnessed the company’s transformation from a battery manufacturer to a global technology powerhouse straddling both the automotive and consumer electronics sectors.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.