CATL shares extend slide to one-year low as Li Auto, Xiaomi spread battery orders to rivals

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.

Xiaomi (HKG:1810) and Huawei launched new foldable smartphones ahead of Apple's (AAPL) product event. Huawei's Mate XT2 offers a tri-fold design, while Xiaomi's 18 Fold is priced lower. Huawei leads in market share, but rising costs and Apple's potential entry pose challenges.

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.

Xiaomi's India operations face scrutiny as SFIO recommends a probe into its business model and compliance with foreign investment rules, per Reuters. The investigation may focus on fund movements and ownership structures. Xiaomi claims it complies with local laws and has not received any notice from the SFIO.

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.