CATL giving discounts to its customers is no problem. It is actually beneficial to us. What it effectively means is that CATL is offering battery cell price discounts to a number of its Chinese customers if they agree to buy at least 80 % of their battery cells from CATL for 3 years. CATL doesn't sell lithium. They simply said that they will employ a ficticious lithium carbonate price of 200K RMB per ton when calculating the battery cell prices for their customers. I think this is very clear. CATL is neither buying or selling lithium carbonate for 200K RMB per ton. It is simply an imputed number. The battery cell price discounts that CATL is offering to some of its customer will result in them being able to reduce production costs and sales prices for their EV models. This will most likely drive demand.
AKE Price at posting:
$11.88 Sentiment: Buy Disclosure: Held
