Abstract: In a three-level supply chain consisting of battery suppliers, new energy vehicle manufacturers, and retailers, the optimal pricing for supply chain members, the optimal pricing decisions, innovation level of battery suppliers, and sales effort of retailers are investigated under centralized and decentralized decision-making models. A joint contract integrating cost-sharing and revenue-sharing is proposed to eliminate the double marginalization effect in decentralized decisions. Numerical analysis is conducted to examine the impact of parameters, such as the overall transaction price on innovation, sales effort, and profit, as well as the effectiveness of the joint contract. Results show that the profit of supply chain members and innovation levels are positively related to the overall transaction price, while negatively related to the innovation cost and sales effort cost coefficients. It is also found that, under certain conditions, the joint contract of cost-sharing and revenue-sharing can lead to Pareto improvement in the new energy vehicle supply chain.