Apple (AAPL  ) is getting into the electric car business, and there are more reports that progress is being made on a deal with Hyundai-Kia (HYMTF  ) to partner on production. Earlier reports indicated that Apple would handle the design, including a revolutionary new battery, that is much better than current batteries, while it would find a partner to handle with production.

Since the March low in the stock market, EV stocks have been among the biggest outperformers. Many speculated that this was a bubble, however, Apple's decision to launch its own EV is a validation of the sector's strength. Now, some analysts are projecting that EV sales will exceed 20 million by 2025 on a global basis.

Apple-Hyundai Partnership

According to CNBC, Apple is close to a deal with Hyundai-Kia to manufacture an Apple car at its assembly plant in Georgia. The car is set to go into production in 2024. However, no agreement has been finalized yet.

For Apple, this is the easiest and least capital-intensive way to make its entry into the automobile market as it wouldn't have to shoulder the cost and burden of building its own manufacturing facilities. The deal would give Apple control over all of the hardware and software in the car while Hyundai would handle the manufacturing.

For Hyundai, it's an incredible opportunity given Apple's size and resources, and the potential that it could dominate the auto market like it has others. Additionally, Apple's car is expected to be fully autonomous, and working with Apple would accelerate its own development of autonomous software for its vehicles. Hyundai's North American factories also have excess capacity.

Apple Car Details

Although the project remains shrouded in secrecy, some details have leaked out about the Apple car. The cars will be designed to not have a driver and be fully electric. Initially, the focus may be on robotaxis and delivery.

Being able to use the cars as robotaxis is reminiscent of Tesla's (TSLA  ) strategy. Notably, Apple hired Doug Field away from Tesla in 2018 to develop autonomous vehicles and also has hired many former Tesla employees, drawing ire from Musk. Musk also has said that he offered to sell to Apple a few years ago when Tesla was struggling but CEO Tim Cook refused to meet with him.

The Apple car has been rumored for many years, but it's clear that it's going to be a reality. Given the company's previous successes and resources, it will have to be taken seriously despite its inexperience at designing cars.