Weekly Recap: Li Auto deliveries rise and ¥2.65B Sunwoda stake

CATL's shares fell 3.84% to a one-year low, down 35% from May's peak, as automakers like Li Auto and Xiaomi diversify battery suppliers. CATL still held a 41.45% market share in August. Competitors Sunwoda, Gotion High-tech, and Farasis Energy saw gains. CATL's H1 2026 revenue was 276.9 billion yuan, with a 23.93% gross margin.

Li Auto plans to launch its Li 6 model in Europe this quarter, six years earlier than previously stated, starting with battery electric vehicles to avoid EU duties on extended-range models. The company will showcase the car at the Paris Motor Show next month but has not yet announced pricing or sales channels. Li Auto faces potential tariffs of 20.7% to 45.3% on its vehicles in Europe.

Li Auto is transitioning its models from CATL batteries to in-house developed cells manufactured by Sunwoda. The L8, L6, and i8 already use these cells, with more models to follow. Li Auto invested $390M in Sunwoda EVB, increasing its stake to 11.17%. The i6, launching in Europe as the Li 6, will also use these new batteries. Deliveries are expected to begin in November.

China's 15th Five-Year Plan for the EV industry aims for 70% of passenger-car sales and 40% of commercial-vehicle sales to be NEVs by 2030, with several Chinese carmakers ranking among the world's top 10. The plan also targets consolidation, strict control of new EV manufacturers, and the exit of inefficient capacity. BYD is the only Chinese carmaker currently in the global top 10.

CATL (300750.SZ) shares fell 3.65% on September 8, with market value dropping 54 billion yuan. Li Auto announced it will use self-developed batteries in all models, reducing reliance on CATL. Xiaomi Auto also partnered with CALB and Sunwoda for its batteries. CATL's market share remains high, but automakers are diversifying suppliers and developing in-house batteries to reduce costs and gain bargaining power.

Li Auto plans to equip its refreshed i6 model with in-house 5C batteries and MACH chips by Q4 2026, with deliveries starting in November. The company is transitioning its entire lineup to proprietary batteries, reducing reliance on CATL due to supply-chain risks and cost control. Li Auto aims to gradually shift key components under its own control, starting with the new-generation MEGA.