Geely and Li Auto shift battery supply strategies

The electric vehicle battery landscape is seeing significant shifts in manufacturer relationships. Geely Auto has clarified its recent transaction involving Chongqing Yaoning, denying rumors of an 85 billion yuan investment or a retreat from independent battery research. The transaction, which saw Ningde Times (CATL) take a controlling 51% stake in the plant through the joint venture Era-Geely, is described by Geely as a strategic asset optimization within its existing cooperation framework.

In contrast, Li Auto is moving toward a more independent battery strategy. After years of investment, Li Auto is transitioning its vehicle lineup to feature self-developed batteries, with plans to largely phase out CATL from its supply system by the fourth quarter. This transition involves a partnership with Sunwoda, through which Li Auto will lead material systems and cell structures while Sunwoda handles large-scale manufacturing.