Aussie EV owners could soon be facing a battery crisis.
The world’s biggest battery maker CATL has warned shortened vehicle-development and validation cycles are leading to wide-scale electric car battery failures, according to reports.
CATL Chairman Robert Zeng said China’s battery defect tolerances are too lenient for high-volume Chinese EV production.
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Chinese carmakers have launched more than 600 new vehicle models this year already, equating to almost three new EVs every day.
Potentially rushed development processes could spell trouble for EV buyers down the line.
CATL is calling for defect tolerances to only allow for up to 1000 defective cells for every one billion cells manufactured.
What are the dangers?
Defective electric car batteries don't just stop a car from driving, but they can also give rise to other safety issues.
The Chinese GAC Aion S was involved in a “banana battery” swelling issue in mid-2026, impacting 213,000 lithium-iron-phosphate examples, where batteries were physically bending. Australian GAC Aion vehicles use a different battery.
This led to cell leakage, insulation faults and power system shutdowns while driving.
Supplier CALB was forced to implement extensive quality reforms and inspection measures as a result of the controversy.
It doesn’t take much for an EV battery to stop working, according to Zeng, who said packs are only as reliable as the weakest component.
Just one defective cell can be detrimental to the performance and safety of the whole pack.
There was a high-profile compensation claim from Geely subsidiary Viridi in early 2026, where it sued battery maker Sunwoda for 2.31 billion yuan for defective cells supplied from 2021 to 2023
The pair eventually settled for 608 million yuan.
What does this mean for Australia?
EV battery reforms are on the agenda in Australia.
A recent report from the Australian Automotive Dealer Network (AADA) called for serious changes to rules around EV battery replacements.
The report warned of a “wave of litigation" when EV batteries need replacement outside of the warranty period because their cost could exceed the vehicle’s remaining value.
One particular dealer said Chinese-built cars are “not holding their charge” or are “blowing up on fire”.
It puts forward that manufacturers should be required to define acceptable battery thresholds or disclose the expected degrading of a unit.
If a battery holds at least 70 per cent of its charge after eight years, it would be considered to be performing at an acceptable level, for example.
