TOKYO (Reuters) – Apple (NASDAQ:) provider TDK (OTC:) has partnered with McLaren Racing in Components E electrical motor racing because the Japanese elements producer targets enlargement within the electrical car sector.

TDK, as soon as well-known to shoppers for its cassette tapes, is the world’s largest provider of smartphone batteries. It’s rising its passive elements and sensors companies and goals to construct its presence within the EV provide chain.

The corporate’s know-how is used within the Nissan (OTC:) e-4ORCE 05 vehicles utilized by McLaren, and TDK will have a look at supplying elements comparable to inverters and sensors, an govt stated.

“Components E know-how is all the time on the reducing fringe of EVs and we would like them to utilise our elements so we will sharpen our know-how,” Taro Ikushima, CEO of TDK’s Digital Parts Enterprise Firm, stated in an interview.

Automotive accounts for nearly 1 / 4 of complete gross sales at TDK, which was based in 1935, with the corporate a number one provider of elements comparable to ceramic capacitors and temperature sensors.

Whereas many followers stay wedded to Components One with the signature sound of its inner combustion engines, curiosity in Components E is rising.

The pace of the broader transition from gasoline automobiles is debated, with Toyota (NYSE:) chairman Akio Toyoda believing the worldwide share of EVs will peak at 30%.

TDK sees alternative throughout the spectrum with plug-in hybrids and battery electrical automobiles utilizing 60% and 100% extra multilayer ceramic chip capacitors respectively than gasoline vehicles.

“Security, sturdiness, longevity, in automotive these are crucial elements and could be utilized to different industries,” Ikushima stated.

TDK shares are up 39% this yr, outperforming the 13% rise in Japan’s broader index.