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BEIJING, February 17 (TMTPOST)— Contemporary Amperex Technology Co. Ltd. (CATL), the No.1 electric vehicle (EV) battery maker across the globe, is joining in the price war initiated by Tesla, one of key EV player downstream, but the latest discounts may focus on the home-grown customers, excluding Tesla.

Source: Visual China

CATL recently offered new discounts for many Chinese companies which are deemed as its strategic customers such as NIO, Li Auto, Huawei, and Zeekr, Chinese digital news outlet 36Kr learned from multiple sources in the industry on Friday. According to the report, key terms in the rebate program will work through a three-year deal, which requires the customers to commit about 80% their battery purchases to CATL and accordingly, CATL will settle some of power batteries based on a favorable lithium carbonate price of RMB200,000 (US$29,116) a ton, suggesting a discount of 57% from the current price as the battery-grade lithium carbonate per ton now costs RMB470,000.

CATL is said to target customers whom it anticipated to post significant deliveries while Tesla was included in the selected list. The battery giant will start to perform the partnership contract, that can secures three-year supply, in the third quarter of the year, and some of targeted auto companies have been in signing process, according to 36Kr’s sources. Besides price cuts for automakers, CATL also requested upstream partners to slash about 10% of price on its supply side, people from the material supplier told the outlet. Such request for big cut is rare for CATL, a leading player which boasts relatively high profit margin, the people added.

CATL is offering rebates to targeted clients and has provided a discount of 7% from established prices to a Chinese EV maker in January, Reuters reported later Friday, citing people familiar with the matter. The company was also reportedly to discuss with material suppliers for cost reduction.

CATL didn’t respond to any queries for comment. Insiders in the battery sector expect its recent move to be a hit for other battery makers. It seems that a smaller Chinese peer has followed suit. 36Kr learned SVOLT Energy Technology, a battery unit of manufacturer Great Wall Motors, also lowered prices for customers, and some of suppliers received mails to cut as a support for the company’s promotion.

關(guān)鍵詞： prices battery chinese customers