Li Auto is gradually reducing its reliance on CATL and transitioning more of its vehicle lineup to battery cells developed in-house. The cells are manufactured by Sunwoda, with the technology already being introduced in several Li Auto models and planned for the i6, which will be marketed in Europe as the Li 6.
According to CarNewsChina, Li Auto’s internally developed cells are already being used in the L8, L6 and i8. The company expects the technology to be introduced to additional vehicle series during the fourth quarter.
New Battery Cells Expand Across Model Range
Li Auto said supplies of the CATL-sourced 5C ternary battery cells previously used in the Mega Home electric van are nearly exhausted. Future orders will therefore use Li Auto’s own 5C cells, with the first vehicles equipped with the new technology expected to be delivered in November.
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The newly launched i9 will initially continue using CATL cells. Li Auto plans to transition the model to its internally developed cells once sufficient production capacity becomes available.
The 2026 model year i6 will also receive the new 5C battery technology alongside Li Auto’s internally developed Mach-Chip. Deliveries are expected to begin in early November.
Li Auto Invests In Sunwoda EVB
Li Auto announced an investment of 2.65 billion yuan, or approximately $390 million, in Sunwoda EVB at the beginning of September.
Including its existing indirect holdings, Li Auto’s stake in the battery company will increase to 11.17%, making it Sunwoda EVB’s second-largest shareholder.
The relationship between the companies dates back to 2017. Under the current arrangement, Li Auto defines battery product specifications and develops the cell materials, cell structure and battery management systems, while Sunwoda is responsible for manufacturing the cells.
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The arrangement gives Li Auto greater control over battery development while reducing its dependence on external cell suppliers.
CATL Relationship Enters Transition
The shift marks a significant change in Li Auto’s battery sourcing strategy. As recently as April, Li Auto ranked among CATL’s four largest customers in China.
Rather than relying primarily on externally developed cells, Li Auto is increasingly controlling key aspects of battery technology itself while maintaining manufacturing cooperation with Sunwoda.
The transition will depend partly on the availability of production capacity, with several models expected to move to the new cells as manufacturing scales.
Li 6 To Bring Technology To Europe
The battery transition is particularly relevant to Li Auto’s European expansion because the i6 is planned for the European market under the Li 6 name.
The automaker plans to present the model at the Paris Motor Show in October and begin European sales during the fourth quarter.
Li Auto’s strategy in Europe differs from its approach in China. In its domestic market, the company has built much of its growth around range-extender SUVs and continues to promote the technology.
For Europe, however, Li Auto plans to offer only battery-electric models. The Li 6 will therefore become one of the company’s key vehicles for its European expansion while also introducing its increasingly in-house battery technology to the market.