Recently, there has been a lot of news that Xpeng will use batteries provided by other battery suppliers in its new mid-size SUV G9, rather than batteries provided by the long-term battery manufacturer CATL. As soon as the news came out, it attracted people’s attention in the electric vehicle industry. XPeng and CATL are the most well-known electric vehicle leaders in China. If the cooperation between the two is about to break, it will definitely significantly impact the industry.
The reason for the news of changing battery suppliers is that the price of CATL’s batteries has risen sharply in recent months, and Xpeng could not accept the pressure of price increases. Thus looked for other battery suppliers. However, earlier, XPeng officially replied to the rumours. “The recent media reports that we will replace our main battery supplier with a new supplier are far from the truth. XPeng will continue to partner with top-tier companies such as CATL as its main suppliers.” Xpeng Stated. This response dispelled rumours that the partnership with CATL would end.
However, this does not mean that XPeng will not introduce new battery suppliers. According to a 36kr, XPeng will gradually replace power cells originally supplied by CATL with CALB’s batteries in the future. Cailian later quoted XPeng sources as saying that the information was correct. The parts supply chain needed to be enhanced on a regular basis to ensure supply and volume and more accurately estimate delivery cycles. For now, CALB has already provided Power cells for XPeng P7.
According to data released earlier this month by the China Automotive Battery Innovation Alliance, CATL continues to dominate the Chinese power battery industry, with 80.51 GWh of power batteries deployed in China in 2021, accounting for 52.1 percent of the market. CALB had a 5.9% market share in China in 2021, which was third behind BYD’s 16.2%. Sunwoda ranked 10th in China with a market share of 1.3 percent in 2021.