Recently, domestic media revealed that sources said that Ningde Times is implementing a "lithium ore rebate" plan to car companies to reduce battery costs. But this news has not been confirmed by the Ningde Times.
The plan proposes that in the next three years, car companies cooperating with Ningde Times need to commit to purchasing about 80% of their batteries from Ningde Times, and can enjoy a portion of the lithium carbonate price of power batteries settled at 200000 yuan/ton (currently the market price is 470000 yuan/ton). The cooperative car companies are only limited to core strategic customers such as Huawei, Ideal, NIO, and Geely Krypton, excluding Tesla. After the cooperation is signed, it will be executed in the third quarter of this year. Currently, some car companies are in the process of signing the cooperation agreement.
As a leading enterprise in the industry, Ningde Times rarely implements price reduction plans. This price reduction measure will increase pressure on other battery manufacturers. At present, Beehive Energy, a subsidiary of Great Wall, has also followed up with a 10% price reduction plan.
Last year, the raw materials for batteries increased by 40%, and Ningde Times directly increased the price of batteries by about 40%. This increase has brought considerable pressure to car companies, which has led new car manufacturers such as NIO and Ideal to invest in homemade batteries or introduce second to third battery companies. But like second and third tier battery companies, they do not completely pass on the material increase to car companies, but rather absorb a portion of the cost in the middle.
The price reduction of Ningde Times this time should be a feeling of pressure, which is undoubtedly good news for car companies. Under the attack of Tesla and BYD, they have gained a breathing opportunity.
