China’s leading battery manufacturers have pledged to pay suppliers within 60 calendar days under a new industry initiative aimed at improving supply chain stability and addressing excessive competition across the battery sector.
The initiative was jointly released by the China Automotive Battery Innovation Alliance (CABIA) and the China Energy Storage Alliance (CNESA), calling on battery manufacturers to complete payments to small and medium-sized suppliers within 60 days of goods being delivered or passing inspection.
Eleven battery companies have signed the commitment, including CATL, BYD’s FinDreams Battery, CALB, Eve Energy and Sunwoda.
Industry Moves to Shorten Payment Cycles
The initiative supports China’s Regulations on Ensuring Payments to Small and Medium-Sized Enterprises, which seek to reduce delayed payments by larger companies to suppliers.
Under the proposal, inspections for materials and components should generally be completed within seven working days.
The industry groups also encourage companies to use cash payment methods, including bank transfers, particularly when dealing with small and medium-sized suppliers. In addition, they recommend gradually reducing the use of commercial acceptance bills and electronic payment vouchers, which can delay when suppliers actually receive funds.
CATL said in a statement that maintaining a healthy and stable supply chain is fundamental to the industry’s long-term development and that protecting suppliers’ legitimate rights is a core responsibility.
Government Supports Supply Chain Reform
China’s Ministry of Industry and Information Technology (MIIT) welcomed the initiative, saying the participation of the 11 major battery manufacturers demonstrates their commitment to improving industry practices.
According to the ministry, China’s power battery and energy storage battery industries remain in a rapid growth phase, with evolving technologies, shifting market dynamics and supply chain coordination still under development.
The ministry noted that upstream suppliers continue to face financial pressure from ongoing research and development investment combined with extended payment cycles, which can weaken their ability to invest in technological innovation.
The latest initiative follows broader government efforts to address excessive competition within China’s battery industry. In late 2025, MIIT urged battery manufacturers to avoid irrational price competition while strengthening capacity monitoring, production oversight and product quality supervision.
Rapid expansion of China’s electric vehicle market has driven significant battery production growth in recent years, but intense price competition has compressed profit margins throughout the supply chain.
The new initiative also encourages manufacturers and suppliers to establish long-term framework agreements to strengthen cooperation and improve supply chain resilience. MIIT said it will continue coordinating with relevant departments to support implementation and promote sustainable development across the battery and energy storage industries.
Source: CnEVPost
