Distinguished Chinese language economist bashes CATL, accuses battery large of suppressing rivals and coercing EV makers

As a beneficiary of the present period and an business chief, CATL has a duty to take care of business ecology, not bully the weak, Ren Zeping mentioned.

There was earlier dialogue about whether or not CATL, which has a 50 p.c share of China’s energy battery market, has used its market place to suppress its rivals and companions. Now, a outstanding economist’s assault on the battery maker has introduced the subject again into the highlight.

“CATL has waged struggle on all sides in recent times, elevating widespread concern. The corporate is suppressing opponents, coercing automobile corporations and squeezing income upstream and downstream,” Chinese language economist Ren Zeping mentioned in an article posted to Weibo at the moment.

CATL has gone from being an early chief and contributor of innovation to an business monopolist and even a destroyer of the market’s honest aggressive ecology, a regrettable metamorphosis, the article mentioned.

China’s new vitality business has seen explosive progress in recent times, the results of a mixture of the expertise revolution, long-term help from nationwide coverage, innovation by scientists, and exhausting work by entrepreneurs, and CATL shouldn’t take the credit score for it, mentioned Ren.

As a beneficiary of the instances and a frontrunner within the business, CATL has a duty to take care of business ecology moderately than bullying the weak, he mentioned.

“To be the chief, you must behave like a frontrunner, with the sample and thoughts of a frontrunner, which is what CATL lacks for the time being and I hope it would enhance,” the article reads.

Ren prompt that Chinese language society, in addition to regulators, give attention to two key questions: Is CATL concerned in utilizing controversial patents to suppress opponents? Is the corporate concerned in monopoly and unfair competitors, utilizing its place within the business to suppress opponents and utilizing ways to coerce downstream new vitality automobile (NEV) corporations?

Just lately, some media and establishments mentioned that CATL used uninnovative patents to maliciously suppress its friends, opposite to the legislative goal of patent regulation to advertise scientific and technological progress and financial and social growth, the article famous.

On December 29, 2022, CALB formally sued CATL for unfair competitors by abusing its patent rights, and the business speculated that the corporate ought to have substantial proof, the article mentioned.

Ren mentioned he helps the resistance of the businesses, together with CALB, from the angle of the long-term well being of the market financial system.

The market financial system is the primary solution to allocate assets, and if particular person corporations don’t suppose forward however attempt to suppress their opponents by unfair means, that is definitely towards the essential backside line of the market financial system, mentioned Ren.

Share of prime 15 EV battery makers in China

He additionally talked about that CATL has a couple of 50 p.c share of the Chinese language lithium battery market, which is the same as the sum of all different opponents. If BYD’s 20 p.c share is taken out, the mixed share of different lithium battery makers is simply over 20 p.c.

Given the scarcity of batteries, will CATL coerce downstream NEV corporations to completely select its batteries? Is there a squeeze on the income of auto corporations and element suppliers? The article asks.

CATL is monopolizing and undermining honest competitors available in the market whether it is doing these items, mentioned Ren.

Ren beforehand labored as a chief macro analyst at Guotai Junan and chief economist at Evergrande Group. He’s presently an unbiased economist and has arrange his personal studio.

CATL continued to rank as China’s largest energy battery maker with a 50.64 p.c share in November 2022 with 17.35 GWh of put in energy battery capability, in response to knowledge launched by the China Automotive Battery Innovation Alliance (CABIA) on December 9. The December figures usually are not but out there.

From July to September 2021, CATL sued CALB for patent infringement and claimed RMB 185 million.

In Might 2022, the corporate raised the quantity to RMB 518 million. On August 1, CATL filed an infringement lawsuit towards CALB for an additional patent with a declare quantity of RMB 130 million.

On November 30, CALB mentioned it obtained a judgment on November 29, ruling that it ought to cease promoting merchandise that infringe CATL’s invention patent.

The corporate additionally needed to compensate CATL about RMB 2.63 million ($368,000) and pay RMB 127,500 for the non permanent safety interval of the invention patent, in addition to RMB 200,000 for CATL’s cheap bills inside 15 days from the date of the judgment.

CALB mentioned that its merchandise have adopted extra superior expertise, which is totally completely different from the sooner expertise patented within the lawsuit, and that its current merchandise won’t be discontinued.

Along with that dispute, in early November, there have been media experiences that CATL had entered into quite a few restrictive clauses with the automobile corporations it partnered with to be able to preserve its place because the business’s chief.

In its partnership with Li Auto, CATL restricted the corporate from selecting different battery suppliers, and if violated, CATL will cease supplying, in response to these experiences.

On November 4, Securities Each day cited CATL’s response that the experiences have been unfaithful. Li Auto additionally mentioned that the corporate’s cooperation with CATL was deepening and that the media experiences have been rumors.

This text was first revealed by Phate Zhang on CnEVPost, an internet site specializing in new vitality automobile information from China.

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