Xpeng Inc (NYSE: XPEV), a Chinese manufacturer of electric vehicles, announced on Wednesday that the company has diversified its battery sources and is no longer counting industry behemoth CATL as its principal supplier. Xpeng’s president made the announcement.
Xpeng Inc Announcement of CATL Departure
The declaration made by one of CATL’s most essential customers demonstrates how Chinese electric vehicle (EV) manufacturers are beginning to explore other suppliers with the goal of better controlling costs following price increases made by dominant player CATL this year.
But according to him, Xpeng decided to collaborate with Sunwoda, a smaller Chinese battery manufacturer, to create a quick-charging battery for the G9 that would allow the SUV to reach 80% charge in 15 minutes. This was Xpeng’s plan all along, he added.
Gu said they have already ensured that their battery suppliers are diverse. CATL is no longer their largest material supplier. EVE and CALB, reputable battery manufacturers, have collaborated with Xpeng Inc.
A request for a response was sent to CATL, but they did not react immediately.
According to the China Automotive Battery Innovation Alliance, CATL maintains a significant lead over its rivals by holding a market share of 47.45% in China. Meanwhile, CALB ranked third, and Sunwoda ranked fifth, accounting for 7% and 2.5% of the total battery supplies in the first eight months.
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Author Valerie Remorosa 
