Li Auto is significantly expanding its influence at Chinese battery manufacturer Sunwoda EVB. The automaker is investing 2.65 billion yuan, equivalent to around $390 million, in newly issued shares of Sunwoda’s battery unit. Upon completion of the transaction, Li Auto will directly hold an 8.79% stake, making it the second-largest shareholder. Through two affiliated entities, its combined indirect stake will rise to 11.17%.
Li Auto Deepens Existing Cooperation
The investment builds on an existing partnership. In 2022, a Li Auto unit invested 400 million yuan in Sunwoda EVB. Subsequent funding rounds diluted the stake, which initially stood at around 3.2%.
In 2025, the two companies also established a battery joint venture, with each holding a 50% stake. The joint venture primarily produces batteries developed by Li Auto.
Battery Strategy Remains Spread Across Multiple Suppliers
According to Li Auto, the company does not view the new stake solely as a financial investment. The companies plan longer-term cooperation in battery technology, manufacturing quality, and industrialization. Li Auto is expected to define product requirements and technical targets, among other responsibilities. Sunwoda EVB will handle engineering, production, and supply chain functions.
At the same time, Li Auto is developing its own battery technology. The company plans to use internally developed batteries in additional models starting in the second half of 2026. However, the automaker continues to rely on multiple suppliers and also maintains a long-term partnership with CATL.
Source:
https://cnevpost.com/2026/09/04/li-auto-to-invest-sunwoda-evb/
