CATL has pledged to offset part of the development costs for its suppliers998 Archivesmake advance payments for their technology innovation, a move made with the hope of accelerating the application of new battery materials and equipment, according to a letter seen by Reuters. The world’s largest battery maker confirmed the letter, which was dated December 2024, was authentic, showing the firm’s willingness to shoulder the burden suppliers have faced from rising competition. In an opposite move, major Chinese automakers BYD and SAIC have recently asked some of their suppliers to cut their prices by 10% next year, which could force them to reduce investment in research and development due to shrinking profits. The news comes as the spot price of battery-grade lithium carbonate had decreased by a third to RMB 76,000 ($10,435) per ton as of Monday from its highest level of RMB 116,000 this year, figures from the metal research institute Shanghai Metals Market showed. Several Chinese lithium miners saw lower profits for the June-September quarter of this year, while Tianqi, a major lithium company, reported its fourth straight quarter of losses in October. [TechNode reporting, Reuters]
