Chinese EV maker Li Auto is gradually switching its entire model lineup to in-house battery cells, cutting its dependence on market leader CATL. At the same time, the company is becoming the second-largest shareholder in battery maker Sunwoda EVB.
According to industry outlet CnEVPost, Li Auto said on September 7 that its self-developed batteries will be used across all model lines in the future. So far the in-house cells power the Li L8, Li L6 and Li i8; in the fourth quarter the company plans to extend the technology to further vehicles.
Refreshed i6 as the spearhead
The centerpiece of the push is the revamped i6, a five-seat electric SUV. It arrives with Li Auto’s own 5C battery and the in-house “Mach” driver-assistance chip. Pre-orders are set to open in late September, with deliveries starting in early November. The next-generation MEGA and the new i9 are also due to switch to the 5C cells during the final quarter.
Multimillion-dollar Sunwoda investment
To secure production, Li Auto is investing around 2.65 billion yuan (about 390 million US dollars) in Sunwoda Electric Vehicle Battery. The move gives it a direct 8.79 percent stake and makes it the second-largest single shareholder. The two firms have run a joint venture since 2025 in which Sunwoda manufactures the cells to Li Auto’s specifications.
The backdrop is mounting cost pressure: the company says its vehicle margin fell to 9.4 percent in the second quarter of 2026, down from 19.4 percent a year earlier. Through integrated development and proprietary core technology, Li Auto aims to lower costs without passing them on to customers. In dropping bought-in cells, the maker follows a path already taken by rivals such as Xpeng.
Sources: CnEVPost · CnEVPost (Sunwoda) · CarNewsChina
