The world’s largest EV battery maker will cut costs for Chinese automakers – but not for Tesla
China’s CATL, the world’s largest EV battery maker, is reportedly offering significantly lower battery costs to some Chinese EV makers, according to CnEVPost today.
CATL cuts costs for Chinese automakers
CATL (Contemporary Amperex Technology Co. Ltd.), which accounted for 37.1% of global EV battery sales in 2022, is reportedly offering a deal on EV batteries for carmakers including NIO, Li Auto (Nasdaq: LI), Huawei, and Zeekr – what CATL considers “strategic clients.”
NIO signed a five-year strategic cooperation agreement with CATL on January 17.
Tesla – CATL’s largest customer – is not among CATL’s “strategic client” group, and Tesla has a gigafactory in Shanghai.
CnEVPost explains how the battery deal will work:
CATL will settle a portion of the price of power supply with automakers based on a price of RMB 200,000 [$29,116] per ton of lithium carbonate for the next three years.
At the same time, automakers signing the partnership will be required to commit about 80% of their battery purchases to CATL, according to the report.
Currently, battery-grade lithium carbonate is quoted at about RMB 470,000 [$68,427] per ton, and car companies that can purchase batteries at a cost of RMB 200,000 a ton will undoubtedly be able to significantly reduce cost pressures, the report noted.
The program will be implemented in the third quarter of 2023, and CATL has asked its material suppliers for a 10% price cut. (CATL ties its battery prices to raw material prices.)
Lithium carbonate prices have been falling since the end of 2022, and Ouyang Minggao, a member of the Chinese Academy of Sciences, said at a conference today that they may fall by as much as 20% in China in 2023.
Lithium resources are expected to return to supply-demand balance in one to two years. CnEVPost reports in a separate story today:
Morgan Stanley expected lithium carbonate prices in China to be at $67,500 per ton in the first half of 2023, falling to $47,500 per ton in the second half of 2023, the latter implying a 35% decline from spot prices at that time.
Electrek’s Take
Which of these things is not like the other?
As I wrote, Tesla is CATL’s largest customer. Does it not get this deal because it’s an American company? Or is it merely because Tesla is already tied into a production pricing agreement with CATL until 2025?
No other non-Chinese automakers appear to be getting CATL’s special deal.
The Biden administration threw down the trade-war gauntlet with the passage of the Inflation Reduction Act in 2022, so of course the Chinese are going to fight back. And Chinese companies produce more than 50% of EV batteries in the global market, so they can.
Just this week, Ford announced a $3.5 billion Michigan LFP battery factory – with CATL – in 2026. The two companies announced a Global Strategic Cooperation covering battery supply in North America, Europe, and China in July 2022.
The lithium market is expected to double by 2030 as EV demand accelerates. The race is on.
Read more: North America’s largest lithium mine can now break ground – that’s great news for EVs
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Environment
Baidu- and Geely-backed JiYue brand unveils ROBO X EV that goes 0-100 km/h in under 1.9 sec
JiYue, a Chinese EV brand focused on delivering all-electric “robocars” to the masses, has unveiled its latest model, and it’s quite a deviation from its previous EVs—but in the best way. Earlier today, JiYue launched the ROBO X supercar, designed for high-speed racing. By high speed, we mean 0-100 km/h acceleration in under 1.9 seconds. My mouth is watering.
JiYue has only existed since 2021, when parent tech company Baidu announced it was expanding from software development into physical EV production, joining forces with multinational automotive manufacturer Geely.
The new “robotic EV” marque initially launched as JIDU with $300 million in startup capital before garnering an additional $400 million in Series A funding, led by Baidu, in January 2022.
In August 2023, Geely took on a larger role in JIDU alongside a greater financial stake as the brand reimagined itself as JiYue, inheriting the JIDU logo and its flagship model, the 01 ROBOCAR.
In December 2023, Baidu and Geely unveiled a second model called the JiYue 07. It was born from JIDU’s ROBO-02 concept, which debuted in 2023 and was designed to compete against the Tesla Model 3 in China.
The 07 finally launched in China earlier this year with 545 miles of range. With an all-electric SUV and sedan on the market, JiYue has unveiled an exciting new entry in the form of a performance supercar called the ROBO X. Check it out:
JiYue’s new ROBO X EV is available for pre-order now
JiYue showcased its new ROBO X hypercar in front of the crowd at the 2024 Guangzhou Auto Show earlier today. Similar to previous models but with a unique spin, JiYue described the ROBO X as an AI smart-driving supercar that, for the first time, blends artificial intelligence and autonomous driving into a high-performance, race-ready EV.
When we say “high performance,” we mean a quad motor liquid-cooled drive system that can propel the ROBO X from 0 to 100 km/h (0 to 62 mph) in under 1.9 seconds. JiYue called the new ROBO X a “performance beast” with “the perfect balance of excellent aerodynamic performance and high downforce.” JiYue CEO Joe Xia was even bolder in his statements about the ROBO X:
For the next 20 years, the design of supercars will bear the shadow of Robo X. This is the best design in the history of Chinese automobiles today, and it is a landmark presence.
Fighter-style airflow ducts bolster the EV’s aerodynamics, efficiency, and overall posture. Per JiYue, the two-seater ROBO X is expected to deliver a maximum range of over 650 km (404 miles).
The new supercar features falcon-wing doors, a carbon fiber integrated frame, and a professional racing HALO safety system offering 360° of support. The interior features an AI smart cockpit with SIMO real-time feedback to give drivers an immersive racing experience.
Furthermore, JiYue said the vehicle will utilize parent company Baidu’s Apollo self-driving technology, which could make it the first electric supercar to apply pure-vision ADAS technology that enables track-level autonomous driving.
Following today’s unveiling of the ROBO X, JiYue has officially opened up pre-orders in China for RMB 49,999 ($6,915). That said, reservation holders will need to be patient as JiYue shared that it doesn’t expect to begin mass production of the ROBO X until 2027.
What do you think? Will people be talking about the ROBO X for the next 20 years?
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This week on Electrek’s Wheel-E podcast, we discuss the most popular news stories from the world of electric bikes and other nontraditional electric vehicles. This time, that includes the launch of the Lectric XPedition 2.0, Yamaha e-bikes pulling out of North America, LiveWire unveils an electric scooter concept, PNY readying its cargo e-scooters for pilot testing, Royal Enfield’s first electric motorcycle, and more.
The Wheel-E podcast returns every two weeks on Electrek’s YouTube channel, Facebook, Linkedin, and Twitter.
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Here are a few of the articles that we will discuss during the Wheel-E podcast today:
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Crude oil futures were on pace Friday for loss for the week, as a supply gut and a strong dollar depresses the market.
U.S. crude oil is down more than 2% this week, while Brent has shed nearly 2%.
Here are Friday’s energy prices:
- West Texas Intermediate December contract: $68.56 per barrel, down 14 cents, or 0.2%. Year to date, U.S. crude oil has shed about 4%.
- Brent January contract: $72.36 per barrel, down 20 cents, or 0.28%. Year to date, the global benchmark has lost nearly 6%.
- RBOB Gasoline December contract: $1.99 per gallon, up 0.46%. Year to date, gasoline has fallen more than 1%.
- Natural Gas December contract: $2.70 per thousand cubic feet, down 2.98%. Year to date, gas has gained more than 4%.
The International Energy Agency has forecast a surplus of more than 1 million barrels per day in 2025 on robust production in the U.S. OPEC revised down its demand forecast for the fourth consecutive month as demand in China remains soft.
A strong dollar also hangs over the market, as the greenback has surged in the wake of President-elect Donald Trump’s election victory.
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