A new commentary examines why Chinese automakers are finding it difficult to reduce their reliance on CATL, even as the country’s new energy vehicle sector expands and more battery suppliers compete for business. The report points to the structure of China’s fast-growing NEV supply chain, which has developed in ways that differ from the long-established models used by carmakers in Europe, the United States, Japan and South Korea.
The analysis suggests that speed, scale and close coordination across the supply chain have helped make CATL deeply embedded in China’s EV industry. That makes it harder for automakers to shift orders elsewhere, even when they want more bargaining power or a broader supplier base. In this model, battery choice is not just about price, but also about manufacturing consistency, integration and operational reliability.
A quality issue linked to GAC Aion’s use of CALB’s LFP batteries is highlighted as an example of the risks involved in moving away from a dominant supplier. While the trimmed report does not provide full details, it indicates that such incidents can reinforce automakers’ caution when considering alternatives to CATL.
The broader takeaway is that China’s EV battery market may be growing more competitive, but replacing an entrenched supplier remains difficult. For many automakers, the challenge is balancing supply-chain diversification with the need to avoid quality problems and production disruption in a market that moves at very high speed.
