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Major Chinese electric vehicle (EV) battery manufacturers have pledged to pay their suppliers within 60 days as part of a broader effort to reduce financial stress and improve the resilience of the country's EV supply chain.
The initiative comes as China's automotive industry continues to face intense price competition and slowing demand, putting pressure on profit margins. Smaller suppliers have been particularly affected by delayed payments and cash flow constraints.
Under an initiative led by the China Automotive Battery Innovation Alliance (CABIA), 11 battery manufacturers, including CATL, CALB, and Sunwoda, have committed to settling supplier payments within 60 days. The alliance has also urged larger companies to ensure timely payments to smaller suppliers or negotiate fair payment terms.
China's Ministry of Industry said that prolonged payment cycles weaken suppliers' cash flow, limit their ability to invest in technological innovation, and negatively impact the long-term development of the entire EV ecosystem.
Although battery prices have declined, they still account for a significant share of EV production costs. Rising input costs and inflation have further increased financial pressure on smaller suppliers.
The latest commitment follows similar pledges made by major Chinese automakers in June 2025 after steel manufacturers publicly raised concerns over delayed payments, highlighting China's continued efforts to improve financial discipline across the automotive supply chain.
