# 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.*

**Published:** October 12, 2026  
**By:** Lian Chen  
**Section:** Batteries & Electric Vehicles — China  
**Format:** Why It Matters  
**Confidence:** medium  
**Source:** https://eastasiabrief.com/batteries-ev/li-auto-ev-rivals-drop-catl-build-house-batteries-675  
**Publisher:** East Asia Brief (https://eastasiabrief.com/)

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## What to know

- Automakers move pack assembly in-house as batteries take 40% to 60% of vehicle cost
- CATL lost supply slot on Li Auto i6, which generated over 120,000 unit deliveries in H1 2026
- Li Auto launches refreshed i6 on Oct. 28, with deliveries starting in early November

![Engineers in hard hats inspect electric vehicle battery packs along an automated assembly line beside a robotic arm. (AI-generated image)](https://eastasiabrief.com/media/2026-10-12-eeb0a285cfab.webp)
*Engineers in hard hats inspect electric vehicle battery packs along an automated assembly line beside a robotic arm. (AI-generated image)*

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.

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Cite as: East Asia Brief, "Li Auto and EV rivals drop CATL to build in-house batteries," October 12, 2026. https://eastasiabrief.com/batteries-ev/li-auto-ev-rivals-drop-catl-build-house-batteries-675