According to three sources familiar with the knowledge at hand, Apple Inc’s negotiations with China’s BYD and CATL over battery supplies for its planned electric vehicle have stalled after the Chinese company refused to set up teams and build U.S. plants that would solely cater to the tech giant.

The Chinese companies have informed Apple that they were not able to meet its requirements, said the sources.

According to a source with direct knowledge of the talks, CATL is reluctant to build a factory in the U.S. citing political tensions between Beijing and Washington.

Following the stalling of talks, Apple is weighing options which include Japanese battery makers. Earlier this month it sent a group of people to Japan to this end. Panasonic Corp is one of the contenders that Apple is considering.

Apple is probably aiming to launch an electric car by 2024. The company has not publicly disclosed its plans.

Apple’s stalled talks with the Chinese companies come at a time when U.S. President Joe Biden is aiming to make the United States a powerhouse in electric cars, and has set a goal of having more than 50% of all new vehicles electric by 2030.

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