BUSINESS

Chinese Battery-Makers Urged to Pay Suppliers Faster

Published: Jul. 1, 2026 6:16 p.m. GMT+8

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Workers produce energy storage batteries at a factory in Lianyungang, Jiangsu province, on June 26. Photo: VCG

Two major Chinese industry associations are urging power and energy storage battery manufacturers to shorten payment terms for small and midsize suppliers to no more than 60 days and settle accounts exclusively in cash.

The initiative, backed by the Chinese government, aims to ease financial strain on upstream suppliers amid a widening industry imbalance, with battery and raw material producers reaping massive profits while downstream automakers struggle with shrinking margins.

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Explore the story in 30 seconds

Two Chinese industry associations urge battery makers to pay small suppliers within 60 days in cash, backed by the Ministry of Industry.
Over 10 major companies (CATL, BYD, etc.) support the initiative, aiming to ease supplier financial strain.
Battery and raw material firms see surging profits, while automaker profits fell 20% in early 2026.

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Who’s Who

Contemporary Amperex Technology Co. Ltd.: Contemporary Amperex Technology Co. Ltd. (CATL) is a major Chinese battery manufacturer. The article notes CATL supported an industry initiative to shorten supplier payment terms to 60 days and settle in cash. In Q1 2026, CATL's net profit surged 48.5% year-on-year to 20.7 billion yuan ($3 billion).

BYD Co. Ltd.: BYD Co. Ltd. (002594.SZ) is a major Chinese battery manufacturer that supported an industry initiative to cap supplier payment terms at 60 days, settling exclusively in cash. This move aims to ease financial strain on upstream suppliers amid rising demand for power and energy storage batteries.

EVE Energy Co. Ltd.: EVE Energy Co. Ltd. is a major Chinese battery manufacturer. In response to a government-backed industry initiative, it supported a proposal to shorten payment terms for small and midsize suppliers to no more than 60 days and settle accounts in cash, aiming to ease financial strain on upstream suppliers.

Sunwoda Electronic Co. Ltd.: Sunwoda Electronic Co. Ltd. (stock code 300207.SZ) is a major Chinese battery manufacturer. It issued a statement supporting an industry initiative, backed by the government, to shorten payment terms for small suppliers to no more than 60 days and settle exclusively in cash, aiming to ease supply chain financial strain.

CALB Group Co. Ltd.: CALB Group Co. Ltd., a major Chinese battery manufacturer, reported a 64.4% year-on-year increase in net profit in the first quarter of 2026, reflecting strong demand for power and storage batteries. The company is among those urged by industry associations to shorten supplier payment terms to 60 days.

Tianqi Lithium Corp.: Tianqi Lithium Corp. (002466.SZ), a major Chinese lithium raw material supplier, saw its first-quarter net profits surge 1,699% year-on-year in 2026 amid strong demand from power and energy storage battery manufacturers. The company benefits from the widening industry imbalance between profitable upstream suppliers and struggling downstream automakers.

Ganfeng Lithium Group Co. Ltd.: According to the article, Ganfeng Lithium Group Co. Ltd. is a Chinese lithium producer. In the first quarter of 2026, its net profit soared 616% year-on-year, reflecting massive profits for upstream raw material suppliers amid strong demand for batteries.

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What Happened When

2025-06 (June 2025)：: 17 major Chinese carmakers pledged to cap supplier payment periods at 60 days.

Second half of 2025：: Demand for power and energy storage batteries began to surge.

First quarter of 2026：: CATL's net profit jumped 48.5% year-on-year to 20.7 billion yuan; CALB Group saw a 64.4% increase.

First quarter of 2026：: Upstream raw material suppliers (Tianqi Lithium and Ganfeng Lithium) reported net profit increases of 1,699% and 616%, respectively.