CATL offers innovation financing to its suppliers
According to a letter from CATL to its suppliers seen by Reuters, the world’s largest battery maker is prepared to cover part of its suppliers’ R&D costs and make advance payments for projects to make technological progress possible on the cost side. The news agency reported CATL had confirmed the authenticity of the letter but declined to comment further.
In the letter, CATL wrote that it also wants to support suppliers with certifications to accelerate the application and production of new battery materials. This comes on the back of the fierce price competition that has been raging in China for around two years, putting car manufacturers and suppliers under great pressure to reduce their costs.
In an interview in November 2024 with Reuters, CATL Chairman Robin Zeng had already indicated that CATL is also keeping an eye on the companies in its supply chain amid the strains of the price war. Zeng said that he recognised the importance of a profitable supply chain in which every player receives a fair share of the profits to survive, saying, “As the big player in batteries, we want to maintain, or try our best to maintain, oxygen for everyone.”
According to figures from SNE Research, CATL has a 37 per cent market share in the global battery market after ten out of twelve months. This is an increase of 36 per cent compared to the same period in 2023. The expansion of CATL capacities continues, as CATL and Stellantis announced just this week that they will be building CATL’s third factory in Europe, in Zaragoza, Spain.
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