Chinese battery manufacturer CATL is reportedly offering select electric vehicle (EV) makers, including NIO, significant discounts on battery costs in an effort to retain core customer loyalty.
The company is implementing a lithium rebate programme for a few strategic clients, with the core terms of the partnership specifying that CATL will settle with car companies at a price of RMB 200,000 per ton of lithium carbonate for the next three years.
Automakers signing the partnership will be required to commit around 80% of their battery purchases to CATL. Currently, battery-grade lithium carbonate costs around RMB 470,000 per ton, so car companies purchasing batteries for RMB 200,000 per ton will be able to significantly reduce cost pressures.
CATL has reportedly asked its upstream suppliers for a 10% price cut, prompting second- and third-tier battery makers to respond with their own price cuts. This move by CATL will make it difficult for other battery manufacturers to compete, particularly those with high gross margins.
The programme is set to be implemented from the third quarter, with some car companies already in the process of signing the cooperation.
