Major Chinese electric vehicle battery makers have pledged to pay their suppliers more quickly, as part of wider efforts to ease financial strain across the auto industry. This move is in line with an initiative by the China Automotive Battery Innovation Alliance, which represents major players across the battery ecosystem.
Payment Delays
Price wars and weakening demand have squeezed margins across China’s vehicle industry, where suppliers have suffered from increasing delays in receiving payments. Last year, Chinese authorities issued rules requiring big companies to settle most payments within 60 days.
In response to the initiative, power and storage battery companies CATL and CALB and Sunwoda, which are members of the alliance, committed to pay those who supply them with the commodities and components they need within 60 days. The alliance urged companies to pay smaller suppliers within 60 days or negotiate reasonable terms with larger partners.
The pledges follow similar commitments by major Chinese automakers in June 2025, after steelmakers publicly complained about payment delays. Eleven battery makers have responded to the initiative, according to the industry ministry.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
