Power Battery Industry Proposes Standardized 60-Day Payment Terms

[Policy Update] The power and energy storage battery industry has issued an initiative to implement a standardized 60-day payment term, with leading companies such as CATL actively responding.

Core Development: 60-Day Payment Term Becomes a Binding Requirement for SMEs

The initiative clearly stipulates that payment terms for small and medium-sized enterprise (SME) suppliers shall commence from the date of delivery or acceptance and must not exceed 60 calendar days. For raw materials and component deliveries, acceptance should generally be completed within 7 working days, after which a certificate of compliance must be issued immediately.

Key Data Point: Full Cash Payments for SMEs

For SMEs, the initiative mandates exclusive use of cash payments (e.g., bank transfers, wire transfers), restricting the use of commercial acceptances and electronic payment instruments. Non-SMEs may negotiate monthly reconciliation, with payment terms commencing from the reconciliation date.

Strategic Foundation: Strengthening Industrial Chain Collaboration

The Equipment Industry Department I of China’s Ministry of Industry and Information Technology (MIIT) emphasized that the industry remains in a growth phase characterized by rapid technological iteration and dynamic market shifts. Standardizing payment practices is essential to implementing the Regulations on Guaranteeing Timely Payments to Small and Medium-Sized Enterprises. Companies including CATL, FinDreams Battery, Sunwoda, CALB, and EVE Energy have publicly endorsed the initiative, aiming to foster a trustworthy, compliant, and mutually beneficial ecosystem.