Luxeed, the automotive brand jointly developed by Huawei and Chery, is set to use higher-cost battery cells from CATL for certain vehicle models due to limited supply from its primary battery supplier, CALB, according to a report by Chinese media outlet Lanjinger.
The decision highlights growing supply pressures in China’s battery industry as automakers rush to meet rising demand driven by new vehicle launches and expiring tax incentives.
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The report said a batch of 82-kWh batteries from CATL will replace CALB units in select Luxeed models, maintaining the same specifications, performance, and warranty standards under Huawei’s Giant Whale Battery platform.
The move aims to ensure timely vehicle deliveries, allowing buyers to benefit from China’s current national purchase tax reduction policy, which is set to expire at the end of 2025. Despite the higher cost of CATL cells, vehicle pricing will remain unchanged, according to the report.
CATL, China’s largest battery producer, held a 42.81 percent domestic market share by installed capacity in September, while CALB ranked third with 7.38 percent, data from the China Automotive Battery Innovation Alliance (CABIA) showed.
Luxeed, operating under Huawei’s Harmony Intelligent Mobility Alliance (HIMA), currently offers two models — the S7 sedan and the R7 coupe SUV — both updated in late August with Huawei’s ADS 4 advanced driving assistance system as part of its “Phase 2.0” lineup.
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The shift comes as battery capacity pressures ripple across China’s electric vehicle (EV) supply chain. In late September, Nio announced that it would prioritize its 100-kWh battery packs for third-generation ES8 production to speed up deliveries, temporarily limiting battery swap station availability.
The broader industry trend suggests that battery supply constraints could affect near-term production targets for several new energy vehicle (NEV) models.
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