CATL has entered into strategic agreements with some of its customers to supply them with batteries guaranteeing to price lithium carbonate at 200,000 yuan ($29,100), around half its current price and just a third of its highs from last November. Lithium carbonate spot prices have continued to fall following the news, ironically making the terms of this deal slightly worse as a result. What CATL wants in exchange is near exclusivity for the duration of the contract – 3 years – for its customers to buy a significant proportion of their battery demands from CATL at these low prices. This is CATL’s way of cementing its dominance in the Chinese battery ecosystem through its past efforts in vertically integrating itself…