CATL reportedly cut lithium costs for strategic customers

CATL reportedly offers a few customers a lithium cost rebate program to solidify their loyalty. However, Tesla, the largest customer of CATL, is not on the list.

People with knowledge of the matter told Chinese media 36kr that CATL would provide lithium carbonate for automakers at CNY200,000 per ton, much lower than the market price of about CNY470,000 per ton.

Sources told 36kr that CATL's preferential program, to be implemented beginning in the third quarter of 2023, will be offered to Li Auto, NIO, Huawei, and Zeekr, which are required to procure 80% of their batteries from CATL over the next three years.

According to SNE Research, CATL, with a 37% share, led the global EV battery market by a large margin. LG Energy Solution and BYD, the second-largest and third-largest EV battery manufacturers, both accounted for 13.6% of the market.

Meanwhile, according to BloombergBNEF, Tesla is the largest BEV brand, accounting for 37.6% of the world's BEV sales. According to Bloomberg's supply chain data, Tesla is the largest customer for CATL and contributed 12.42% of CATL's sales in the first half of 2022.

It is to be noted that CATL does not provide a preferential program to its largest customers, such as Tesla and Beijing Automotive. Sources told 36kr that CATL believed Li Auto, Nio, Huawei, and Zeekr were 'strategic' customers and would see good sales in China's EV market.

Besides CATL, China-based Svolt is reportedly looking to provide a 10% price cut for its customers, 36kr reports.

Source: Bloomberg, compiled by DIGITIMES Asia, February 2023