February 16 another Apple supplier dabbled in electric cars

Lixun Precision, which assembles Apple's AirPods, is investing in a Chinese electric car company.

Although Lixun Precision aims to take over more iPhone orders for iPhone, the company is still following its competitors to avoid relying too much on Apple. As Foxconn recently did, Lixun Precision is turning to the electric car market.

According to Nikkei Asia, Lixun Precision Industries is forming a joint venture with Chery's Chery New Energy division.

It is reported that Chery New Energy will be set up in the next three months with a capital of 267 million US dollars. Lixun Precision will hold a 30 per cent stake and the new plant is under construction.

Wang Laichun, chairman of Lixun Precision, told investors that the AirPods assembler will not become an automobile company. In addition, vehicles created will not be marked as Luxshare.

Instead, she says Lixun's goal is to become a so-called first-tier supplier. If the secondary supplier will make components for the product, the first-tier company can manufacture complete equipment.

In theory, this could mean that Lixun does produce cars, while Chery leaves only a superficial brand. However, given that Wang Laichun stressed that the company would not become a carmaker, Lixun Precision is more likely to assemble the most critical systems.