China’s Contemporary Amperex Technology Co., Limited (CATL), the world’s largest battery manufacturer, has pledged financial assistance to its suppliers to accelerate innovation in battery materials and equipment. According to a letter seen by Reuters and confirmed by CATL, the company is prepared to fund research and development costs and provide advance payments for projects to ensure technological progress and market competitiveness.
The December 2024 letter outlined CATL’s commitment to aiding suppliers with certification processes to fast-track the adoption and production of new battery technologies. These initiatives aim to mitigate the challenges suppliers face as the ongoing electric vehicle (EV) price war in China pressures manufacturers and suppliers to cut costs.
CATL holds a commanding 36.8% share of the global EV battery market for the first 10 months of 2024, up from 35.9% in the same period in 2023, according to SNE Research. This solidifies its dominance while competitors like South Korea’s LG Energy Solution saw their share shrink to 11.8% from 13.9%. CATL Chairman Robin Zeng emphasized the importance of a sustainable supply chain in a November interview, stating, “As the big player in batteries, we want to maintain, or try our best to maintain oxygen for everyone.”
