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

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 use its own batteries in all models by Q4 2023, transitioning from CATL cells. The company aims to control costs and improve supply, as vehicle margins fell to 9.4% in Q2. Li Auto designs batteries with Sunwoda, investing $390M for an 8.79% stake. The i6, i9, and Mega models will switch to in-house batteries, with deliveries starting in November.

Li Auto delivered 37,679 vehicles in August, up 32.1% year-over-year, totaling 1.80M year-to-date. The company aims for 95,000-100,000 Q3 deliveries, needing 26,853-31,853 in September. Li Auto also invested ¥2.65B (~$395M) for an 8.79% stake in Sunwoda Power Technology.