Li Auto to add CALB as third battery supplier, sources say
Li Auto will add China Aviation Lithium Battery (CALB) as its third battery supplier. This diversifies its supply chain, which currently includes CATL and Sunwoda. CALB batteries will first equip Li Auto’s battery electric models, starting with the 2026 Li i6. The i6 is a key model, accounting for over 50% of Li Auto's sales with more than 120,000 deliveries in the first half of this year.
Li Auto's addition of CALB as a third battery supplier reflects a broader shift among Chinese EV makers. Companies like HIMA and Xiaomi are also diversifying suppliers and developing in-house battery brands. This strategy aims to secure supply and reduce costs amid intense market competition and rising input prices for materials like lithium carbonate.
For China's EV sector, this means increased pressure on top-tier battery suppliers like CATL. Second-tier players like CALB and Sunwoda gain market share and strategic partnerships. Li Auto's investment of RMB 2.65 billion (USD 394.6 million) in Sunwoda’s EV battery business, SEVB, makes it SEVB's second-largest shareholder, showing a deep commitment to its own-brand batteries.
The thing to watch is how much control Li Auto gains over its battery supply chain by 2026. The company plans to use Li Auto-branded batteries across its entire lineup, including the next-generation Mega and the all-new Li i9. Success here will dictate future margins and production stability.
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