Key facts
- Major Chinese EV battery makers CATL, CALB, and Sunwoda pledged to pay suppliers within 60 days.
- The initiative was launched by the China Automotive Battery Innovation Alliance.
- The move aims to ease financial strain across China's auto industry.
- Price wars and weakening demand have squeezed margins and led to payment delays for suppliers.
- Eleven battery makers have responded to the initiative.
Major Chinese electric vehicle battery manufacturers have pledged to expedite payments to their suppliers, a move designed to alleviate financial pressures within the country's auto sector. Companies including CATL, CALB, and Sunwoda, all members of the China Automotive Battery Innovation Alliance, committed to settling payments within 60 days.
The initiative comes as price wars and softening demand have compressed profit margins across China's automotive industry, leading to significant payment delays for suppliers. The industry ministry highlighted that extended payment cycles directly impact suppliers' cash flow, hinder investment in technological innovation, and ultimately undermine the long-term development of the entire industrial chain.
This commitment follows similar pledges made by major Chinese automakers in June 2025, after steelmakers publicly voiced concerns about delayed payments. The alliance also urged other companies to adhere to the 60-day payment window or negotiate fair terms with their partners. Eleven battery makers have reportedly responded to the initiative.