On 5 June 2025, Fulin Precision Machining announced that CATL had paid RMB500M (US$69M) on 31 May to support the construction of Fulin’s new facility. While this represents a routine move to strengthen supplier relations and secure future supply chains, it is a rare commitment amid today’s ongoing price wars.

At the Shanghai Auto Show earlier this year, CATL’s CEO Zeng Yuqun, publicly stated during discussions with Li Auto’s CEO: "Product strength is paramount—slashing prices to the extreme is meaningless." CATL’s batteries command a price premium of at least 10% over competitors, and consequently, its adoption in low-end electric vehicles (EVs) remains limited. Even in mid-to-high-end segments, most automakers reserve CATL batteries for premium trims only.

While price wars engulf both power and energy storage batteries, with second-tier brands selling near cost, CATL maintains its leadership through premium pricing and a high level of quality. This raises critical questions for the industry as to whether price reduction is the only path to securing market share and if the only way to reduce costs is by harming the interests of upstream suppliers.

CATL continuously strengthens its collaboration with upstream material suppliers for supply chain stability and for cost control. It provides a comprehensive support package for outstanding suppliers, including material verification, business support, R&D funding, advance payment systems, and strategic partnerships to facilitate relationships. Such a system also builds dependencies and order security for increased supply chain control. This model aligns with China’s newly enacted policy (10 June 2025) to shorten payment cycles across supply chains.