South Korea’s Hyundai Motor Co said on Friday it was in early talks with Apple after a domestic broadcaster said the firms were discussing an electric car and battery tie-up, sending Hyundai shares surging 25%.

The report comes weeks after Reuters reported that Apple was moving forward with self-driving car technology and was aiming to produce a passenger vehicle that could include its own breakthrough battery technology as early as 2024.

Earlier on Friday, Korea Economic Daily TV said the iPhone maker and Hyundai were in discussions to develop self-driving electric vehicles by 2027 and develop batteries at U.S. factories operated by either Hyundai or its affiliate Kia Motors Corp. The broadcaster didn’t cite sources for its report.

“Apple and Hyundai are in discussions but they are at an early stage and nothing has been decided,” Hyundai said in a statement without saying what the talks were about.

In a regulatory filing issued later, the automaker said it was “getting requests for cooperation on joint development of autonomous electric vehicles from various companies”, without identifying any of them.

Apple declined to remark.

An Apple-marked vehicle could be a major test to electric vehicle (EV) market pioneer Tesla Inc. It stays indistinct who might collect such a vehicle, yet examiners have said they anticipate that the organization should depend on an assembling accomplice to fabricate vehicles.

“We proceed to unequivocally trust Apple at last reports an EV vital organization in 2021 that lays the preparation to enter the expanding EV space,” Wedbush investigators said in a note.

Hyundai and Apple as of now cooperate on CarPlay, Apple’s product for interfacing iPhones to vehicles from an assortment of automakers.

“Apple re-appropriating vehicle creation to Hyundai bodes well, on the grounds that (the Korean firm) is known for quality,” said Jeong Yun-charm, a previous originator at Hyundai and an educator at UNIST in South Korea.

“However, I’m uncertain about whether it is a decent methodology for automakers to resemble the Foxconn of Apple as automakers face dangers of losing control to tech firms,” he added, alluding to the Taiwanese agreement maker’s inventory contract with Apple on iPhones.

Experts said Apple might be keen on utilizing Hyundai’s electric vehicle stage and offices to reduce expenses to create and make vehicles.

“Apple could consider Hyundai to be an ideal accomplice, since with regards to heritage U.S. automakers, they all have solid association, which Apple might want to keep away from,” said Kevin Yoo, an expert at eBEST Investment and Securities.

“Additionally, their (inheritance U.S. automakers) work cost is a lot higher than that of Hyundai, which regularly assumes a major job with regards to vehicle creation.”

A tie-up with Apple would be a significant lift to the automaker, whose worldwide deals a year ago fell over 15% as the pandemic negatively affected interest.

A long-lasting victor of adversary hydrogen energy component vehicles, Hyundai as of late expanded wagers on battery-controlled electric vehicles, a move invited by speculators peering toward the new achievement of Tesla.

The South Korean organization, which sources batteries from SK Innovation Co Ltd and LG Chem Ltd and others, is required to dispatch its first vehicle dependent on a devoted electric vehicle stage known as E-GMP early this year.

Hyundai doesn’t have devoted electric vehicle industrial facilities in the United States and it might need to acquire assent from its ground-breaking association in South Korea were it to try to construct EVs abroad, investigators said.

Offers in Hyundai Motor hopped as much as 24.8%, hitting an over seven-year high of 255,000 won, while automobile parts creator Hyundai Mobis Co Ltd bounced almost 30%. Kia shares bounced some 14%.

Battery creators likewise made strides, with SK Innovation up 7%. The more extensive KOSPI market was up 2.8% starting at 0336 GMT.

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