Chinese electric vehicle manufacturer Leapmotor has started supplying its internally developed battery packs to external customers, signaling a new phase in its strategy to diversify beyond vehicle manufacturing.
The company is leveraging its battery technology subsidiary, Lingxiao Energy, to manage the supply of battery packs to third-party clients. The packs incorporate battery cells sourced from major suppliers including Contemporary Amperex Technology Co Ltd (CATL), according to a report from Chinese technology publication 36kr.
Leapmotor has reportedly secured orders from more than five commercial vehicle manufacturers and is in advanced talks with Seazon Motor, a maker of new energy commercial vehicles. The expansion into component supply marks a shift for Leapmotor as it looks to emulate the dual-track business model adopted by peers such as BYD, which balances vehicle production with sales of key automotive technologies.
Leapmotor has invested heavily in research and development of core components in recent years, aiming to reduce supply chain costs and strengthen control over its technologies. The new component business is expected to support this strategy while opening up additional revenue streams.
The supply arrangement could also serve battery cell makers such as CATL, by extending their reach into the commercial vehicle segment through Leapmotor’s distribution channels.
In addition to expanding its domestic business, Leapmotor is strengthening global ties. It formed a joint venture with Stellantis in May 2024, under which Stellantis holds a 51% stake. The partnership follows a €1.5 billion investment announced in October 2023, making Stellantis the largest external shareholder in the Chinese EV maker.
Leapmotor also signed a cooperation agreement with FAW Group’s Hongqi brand in March to co-develop an NEV model for overseas markets, with production targeted for the second half of 2025.