The talk about linking Apple’s car causes Kia Motors shares to skyrocket

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Shares of the automaker closed 9.7% in Seoul on Wednesday, reaching 97,700 Korean won ($ 87.70) per share. This is the highest level since August 1998, according to data provided by Refinitiv Eikon.

According to a report by the Dong-a Ilbo newspaper, apple (AAPL) is about to invest 4 trillion won ($ 3.6 billion) in Kia for a partnership to build a new vehicle.

CNN Business was unable to verify the report. Kia and parent company Hyundai declined to comment Wednesday, while Apple did not immediately respond to the request for comment.

According to the newspaper, Kia would start producing cars for Apple at its factory in the state of Georgia in the United States, with an initial goal of 100,000 cars a year. That capacity could increase to 400,000 a year, he said.

The newspaper also reported that an agreement could be signed as soon as February 17, with the aim of deploying Apple cars in 2024.

Speculation about Apple’s interest in working with the South Korean auto industry has intensified recently.

Last month, Hyundai (HYMTF) It was reported that he was in talks with the iPhone maker to develop electric cars. News of the time also propelled Hyundai shares to their best day in at least two decades.

Hyundai has previously said that “it was receiving cooperation proposals from several companies, but no decision has yet been made.”

Hyundai shares are skyrocketing as it reports it is in talks with Apple to build a car

If the deal materializes, Apple’s multimillion-dollar investment will go to the manufacture and development of the new car, according to Dong-a.

A collaboration with the South Korean giant could make a lot of sense.

Of all the automakers, Hyundai has been one of the most open to joining forces with other companies, and even tech companies, according to analysts. Beyond Kia ownership, Hyundai is also working with the Chinese search giant Baidu (TO START) and American chip maker Nvidia (NVDA) on autonomous driving. The large number of existing partnerships could make the company a more attractive partner for Apple.
Hyundai has also made significant progress in next-generation vehicles, including cars with hydrogen fuel cells and the electric vehicle manufacturing platform it introduced in December.
But Apple may also choose to establish several partnerships, with analysts floating other major vehicle manufacturers as possible options.

– CNN’s Jake Kwon, Jill Disis and Charles Riley contributed to this report.

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