Prime Highlights :
- CATL, CALB, and Sunwoda commit to 60-day supplier payments under a China Automotive Battery Innovation Alliance drive to ease cash flow pressure on smaller supply chain businesses.
- Eleven battery makers back the initiative, reflecting wide industry support for faster payment practices across China’s EV battery sector.
Key Facts :
- Alliance members must pay smaller suppliers within 60 days or negotiate fair terms with larger partners.
- China’s industry ministry confirms eleven battery manufacturers have joined the initiative.
Background :
China’s leading electric vehicle battery manufacturers have pledged to settle supplier payments within 60 days, responding to a new industry push to ease financial pressure on smaller businesses across the supply chain.
CATL, CALB, and Sunwoda signed on to the commitment after the China Automotive Battery Innovation Alliance launched the initiative. All three are members of the alliance, which represents major players across the battery industry.
The alliance told member companies to pay smaller suppliers within 60 days and work out fair payment terms with larger partners where standard timelines do not apply. Eleven battery makers have joined so far, China’s industry ministry confirmed.
The move comes as battery companies face growing pressure over how they handle payments to businesses feeding their supply chains.
Delayed payments have long squeezed smaller component and commodity suppliers, especially those dealing with large manufacturers that carry significant bargaining power.
Faster payment cycles, the alliance says, will bring more stability to the broader battery supply chain as China’s electric vehicle sector keeps growing. CATL holds the top spot globally by market share, while CALB and Sunwoda also carry weight in both power and storage battery segments.
The industry ministry’s confirmation that eleven companies have joined points to the pledge gaining ground beyond the first group of signatories.
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