CATL to provide suppliers with financial support to boost battery innovation

Shanghai (Gasgoo)- Recently, CATL reportedly issued an open letter to its supplier partners, inviting them to share and discuss the latest innovations in materials, equipment, processes, and technologies related to batteries. The letter outlines clear mechanisms for intellectual property ownership and business collaboration.

Photo credit: CATL

According to the letter, CATL is offering several support measures:

● Material validation and promotion: CATL will assist in the verification and promotion of new materials, ensuring that competitive technologies or innovations are swiftly implemented in production.

● Business collaboration: CATL may prioritize partnerships with suppliers, offering preferential business terms or pricing to help expand their market share.

● R&D funding: Based on the contribution of research outcomes, CATL will cover part of the R&D costs to ease the financial burden on suppliers.

● Prepayment support: For particularly promising technologies or innovations, CATL may provide prepayments to ensure smooth project development.

● Strategic partnerships: CATL is open to signing strategic cooperation agreements or jointly investing in new ventures to develop markets together.

On December 16, a CATL representative confirmed the company's willingness to provide R&D funding support, as expressed in the letter.

In November this year, Dr. Robin Zeng, chairman and CEO of CATL, highlighted the importance of building a profitable supply chain during an interview. He emphasized the need for stakeholders to earn a fair share of profits to sustain their operations, stating, "As a leading company in the battery sector, we hope to maintain, or at least preserve, opportunities for everyone's survival."

CATL and Stellantis announced on December 10 their agreement to invest up to €4.1 billion in a joint venture to build a large lithium iron phosphate (LFP) battery plant in Zaragoza, Spain. 

Designed to operate under a carbon-neutral framework, the facility is set to begin production at the Stellantis manufacturing site in Zaragoza by late 2026. It will have an annual output of up to 50 GWh, contingent on the growth of Europe's electric vehicle (EV) market and continued support from the Spanish government and the EU.