Apple supplier TDK partners with McLaren Racing in EV push

TOKYO (Reuters) – Apple supplier TDK has partnered with McLaren Racing in Formula E electric car racing, as the Japanese parts maker focuses on expanding in the electric vehicle sector.

TDK, once known to consumers for its cassette tapes, is the world’s largest supplier of smartphone batteries. The company is expanding its passive components and sensors business and aims to increase its presence in the EV supply chain.

The company’s technology is used in the Nissan e-4ORCE 05 cars used by McLaren, and TDK will look to supply components such as inverters and sensors, an executive said.

“Formula E technology has always been at the forefront of EVs and we want them to use our components so we can hone our technology,” Taro Ikushima, CEO of TDK’s Electronic Components Business Company, said in an interview.

The automotive sector accounts for almost a quarter of total turnover for TDK, which was founded in 1935, with the company being a leading supplier of components such as ceramic capacitors and temperature sensors.

While many fans remain loyal to Formula 1 with the characteristic sound of the combustion engines, interest in Formula E is growing.

The speed of the wider transition away from petrol vehicles is being debated, with Toyota chairman Akio Toyoda believing the global share of electric vehicles will peak at 30%.

TDK sees opportunities across the spectrum with plug-in hybrids and battery-electric vehicles that use 60% and 100% more multi-layer ceramic chip capacitors, respectively, than gasoline cars.

“Safety, durability and longevity are very important factors in the automotive sector and can be applied to other industries,” said Ikushima.

TDK shares are up 39% this year, outperforming the 13% gain in Japan’s broader Topix index.

(Reporting by Sam Nussey; Editing by Jamie Freed)