China’s Xpeng says CATL is no longer its largest battery supplier

SHANGHAI (Reuters) – Xpeng has diversified its battery suppliers and not counts trade large CATL as its major provider, the Chinese language electrical automobile maker’s president mentioned on Wednesday.

The disclosure by one in every of CATL’s largest purchasers displays how Chinese language EV automakers are beginning to search for various suppliers in hope of higher controlling prices, after dominant participant CATL raised costs this yr.

Xpeng was CATL’s third-largest shopper after Tesla and Nio by way of battery volumes put in in 2021, in line with Chinese language consulting agency Gaogong Business Institute.

Xpeng now makes use of a number of battery makers along with CATL, Brian Gu instructed reporters in a web based interview on Wednesday on the sidelines of a launch for its new G9 flagship sports activities utility car. He didn’t give a motive for the diversification.

However he mentioned that Xpeng selected to work with Sunwoda, a smaller Chinese language battery maker, to develop a fast-charging battery for the G9 that may allow the SUV to attain 80% cost in quarter-hour.

“Now we have already diversified our battery provider association. CATL is not our largest materials provider. We even have labored with a number of high-quality battery suppliers, for instance, EVE, CALB,” Gu mentioned.

CATL didn’t instantly reply to a request for remark.

Nonetheless, CATL stays far forward of its opponents with a market share of 47.45% in China, whereas CALB ranked third and Sunwoda ranked fifth, accounting for 7% and a couple of.5%, respectively, of the entire battery provides within the first eight months, in line with China Automotive Battery Innovation Alliance.

(Reporting by Zhang Yan and Brenda Goh; Modifying by Lisa Shumakere)