Nio moves toward greater reliance on CATL for batteries, report says

• Nio and BYD's FinDreams have suspended their battery supply cooperation as L60 orders are insufficient to support multiple suppliers, according to a local media report.
• Nio has also increased its reliance on CATL's supply for other batteries used in the Nio brand and Onvo.

Nio Inc (NYSE: NIO, HKG: 9866) introduced new battery suppliers over the past two years to reduce its dependence on CATL (HKG: 3750, SHE: 300750). However, these efforts now appear to be reversing.

Nio has halted battery supply cooperation with BYD's (HKG: 1211, OTCMKTS: BYDDY) FinDreams Battery for its Onvo sub-brand's L60 midsize SUV (sport utility vehicle), as orders are insufficient to sustain multiple suppliers, local media outlet 36Kr reported today citing industry sources.

At the same time, for the 100-kWh batteries previously supplied partly by CALB (HKG: 3931) to the Nio main brand, the supplier has now switched to CATL, according to the report.

For Onvo's 85-kWh long-range battery, Nio has also brought in CATL as a supplier, with the battery maker set to become the primary supplier for this battery, the report said.

CATL has been Nio's primary battery supplier since the EV maker's founding in November 2014, serving as its sole supplier for many of its early years.

The two companies have maintained a close partnership, jointly establishing Mirattery, or Wuhan Weineng, with other shareholders to manage Nio's battery assets.

Over the past several years, Nio has introduced new battery suppliers including BYD, CALB, and Sunwoda (SHE: 300207) as new battery suppliers. It also attempted to produce its own battery cells, though this effort was abandoned due to financial constraints.

Regarding Nio's battery supply situation, rapid changes emerged in 2025. Nio faces operational challenges, including pressure from battery payments, a situation CATL is well aware of, as noted by the 36Kr report.

CATL has taken steps to support Nio, investing in businesses like Nio Power and Mirattery to alleviate the funding needs of its major client, the report said.

For Nio, it has also acted accordingly, proactively increasing its battery supply from CATL, the report noted.

Beyond investments, CATL is also supporting Nio in product delivery.

Following the strong sales performance of the Onvo L90 and new ES8 models launched in the second half of 2025, CATL prioritized production resources from its Luoyang and Liyang facilities to support Nio's new vehicle deliveries amid tight capacity constraints, 36Kr said.

Helping Nio navigate these challenges was a clear strategic choice for CATL, the report observed.

With annual sales exceeding 200,000 units and battery demand at swap stations, Nio's annual battery procurement could reach 20 GWh, representing a value of at least RMB 10 billion ($1.43 billion), the report noted.

Beyond its substantial support for Nio, CATL's robust engineering capabilities are also key to securing larger market shares.

CALB was the preferred supplier for Onvo's 85-kWh battery, but numerous challenges arose during the process from cell production to packaging, shaking Nio's confidence in the partnership, according to 36Kr.

CATL promptly recognized this opportunity and conducted assessments and preparations after the Chinese New Year this year. By mid-year, after receiving Nio's request, CATL achieved development and delivery within just five months, the report said.

By late July, the Onvo L90 equipped with the 85-kWh battery pack was launched with strong initial sales, with CATL's battery supply alleviating Nio's capacity constraints, the report noted.

"CATL earned this money through its personnel readiness and engineering capabilities," a Nio insider cited by 36Kr said, adding that they had used products from multiple battery manufacturers.

Nio faced battery shortages following the late-September launch of the third-generation Nio ES8 and the late-July rollout of the Onvo L90.

This appears to have been swiftly resolved. Earlier this month, Onvo announced plans to double the number of available battery packs at swap stations within one month, indicating sufficient battery supply for vehicle production.

CATL remains the world's largest battery supplier, maintaining its top position with a 38.1 percent global market share from January to October, according to South Korean market research firm SNE Research. It is the only manufacturer exceeding 30 percent market share.

In China, CATL held a 43.71 percent share of the overall battery market by battery installations in November, per data from the China Automotive Battery Innovation Alliance (CABIA).

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($1 = RMB 7.0067)