Chinese electric vehicle maker Nio has scaled back its use of alternative battery suppliers and increased reliance on Contemporary Amperex Technology Co Ltd (CATL), reversing efforts made in recent years to diversify its supply chain, according to a report by Chinese media outlet 36Kr.
Nio had introduced multiple battery suppliers, including BYD’s FinDreams Battery, CALB, and Sunwoda, as part of a strategy to reduce dependence on CATL. However, that approach has begun to shift as the automaker faces supply pressures and rising production demands.
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According to the report, Nio has halted cooperation with BYD’s FinDreams Battery for the 85-kilowatt-hour battery used in the Onvo L60 midsize sport utility vehicle, citing insufficient order volumes to support multiple suppliers. At the same time, battery supply for the 100-kWh packs used in Nio-branded models has moved from CALB back to CATL.
CATL has also become the primary supplier for the 85-kWh battery used in the Onvo brand, replacing CALB. The change comes as Nio works to stabilize production following strong demand for newly launched models, including the Onvo L90 and the latest version of the ES8.
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CATL has been Nio’s main battery partner since the automaker’s founding in 2014. The two companies also jointly established Mirattery, also known as Wuhan Weineng, to manage battery assets and support battery-swapping operations. Although Nio later sought to diversify suppliers, industry sources said CATL’s scale and execution capabilities have become increasingly critical.
“Nio’s production rhythm and delivery targets require a level of supply certainty that only a few battery makers can provide,” a source familiar with the matter told 36Kr. “CATL’s ability to mobilize capacity quickly became a decisive factor.”
According to the report, CATL increased support for Nio by allocating production capacity from its plants in Luoyang and Liyang, helping ease bottlenecks following strong sales of the Onvo L90 and the updated ES8. Nio had faced battery shortages after launching the two models in the second half of the year.
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CATL’s support extends beyond manufacturing. The battery maker has invested in Nio-related entities such as Nio Power and Mirattery, helping to ease the automaker’s financial pressure amid rising capital needs. Nio’s annual battery demand, including swap station usage, is estimated at around 20 gigawatt-hours, equivalent to procurement spending of roughly 10 billion yuan ($1.43 billion), according to the report.
CALB, which had been a preferred supplier for the 85-kWh battery pack, reportedly encountered challenges during development and validation, prompting Nio to reassess its supplier mix. CATL moved quickly to step in, completing development and delivery within five months after receiving Nio’s request, 36Kr reported.
By late July, the Onvo L90 equipped with CATL-supplied batteries had entered the market, with deliveries proceeding smoothly. Nio has since said it plans to double the number of available battery packs at swap stations within a month, signaling improved supply conditions.
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CATL remains the world’s largest battery manufacturer, holding a 38.1% global market share from January to October, according to data from SNE Research. In China, it accounted for 43.71% of installed battery capacity in November, data from the China Automotive Battery Innovation Alliance showed.