Li Auto and EV rivals drop CATL to build in-house batteries
Regulatory filings and supply shifts show automakers reallocating cell procurement to CALB and Sunwoda while assembling proprietary battery packs to escape steep supplier margins.
Chinese electric vehicle makers including Li Auto and Xiaomi accelerated investments on Oct. 12, 2026 to develop battery packs in-house, curbing reliance on dominant supplier Contemporary Amperex Technology to protect vehicle margins.
Traction batteries account for 40% to 60% of total vehicle manufacturing cost in China. Automakers are restructuring procurement as intense retail discounting compresses carmaker profit margins across the domestic market.
The documents behind this briefing are linked above. East Asia Brief produces its English text with AI assistance under human editorial review, and does not translate or republish other outlets' articles. See our methodology and AI policy. Spotted an error? Tell us.
