Li Auto and Sunwoda Power Form Joint Venture for Battery Manufacturing
Li Auto has officially entered the battery manufacturing sector through a strategic partnership with Sunwoda Power Technology. According to business registry Tianyancha, the two companies jointly established Shandong Li Auto Battery Co., Ltd. on October 13, with a registered capital of RMB 300 million (approximately $42 million). Each partner holds a 50% stake in the new entity. The joint venture is dedicated to the research, development, production, and sales of lithium-ion power batteries specifically designed for electric vehicles. This initiative represents a significant milestone in Li Auto’s broader strategy to achieve self-developed and self-manufactured supply chain capabilities. By internalizing battery production, Li Auto aims to stabilize its supply chain, reduce operational costs, and enhance its influence within the automotive industry. The company has set a target to begin mass production of these self-developed batteries by 2026. This move underscores the increasing trend among electric vehicle manufacturers to secure critical component supplies vertically, reducing reliance on external suppliers and improving competitive positioning in the rapidly evolving EV market.
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Li Auto and Sunwoda Power Form Joint Venture for Battery Manufacturing
Li Auto has officially entered the battery manufacturing sector through a strategic partnership with Sunwoda Power Technology. According to business registry Tianyancha, the two companies jointly established Shandong Li Auto Battery Co., Ltd. on October 13, with a registered capital of RMB 300 million (approximately $42 million). Each partner holds a 50% stake in the new entity. The joint venture is dedicated to the research, development, production, and sales of lithium-ion power batteries specifically designed for electric vehicles. This initiative represents a significant milestone in Li Auto’s broader strategy to achieve self-developed and self-manufactured supply chain capabilities. By internalizing battery production, Li Auto aims to stabilize its supply chain, reduce operational costs, and enhance its influence within the automotive industry. The company has set a target to begin mass production of these self-developed batteries by 2026. This move underscores the increasing trend among electric vehicle manufacturers to secure critical component supplies vertically, reducing reliance on external suppliers and improving competitive positioning in the rapidly evolving EV market.
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