CATL Stock Hits One-Year Low as Li Auto and Xiaomi Diversify Battery Suppliers

CATL’s Shenzhen-listed shares dropped another 3.84% on Wednesday, touching their weakest level in a year. The battery giant has now lost roughly 35% of its value since early May, when the stock was trading near its recent high.

The decline comes as two of China’s most prominent EV makers, Li Auto and Xiaomi, are reportedly broadening their battery sourcing strategies by placing orders with CATL’s competitors. This shift suggests that key customers are no longer willing to rely on a single supplier for such a critical component.

For CATL, the world’s largest EV battery manufacturer, the stock slide reflects growing investor concern about market share erosion. As automakers seek to reduce dependency on any one vendor, the competitive landscape for battery supply is becoming more fragmented.

The situation highlights a broader trend in the EV industry, where securing multiple battery sources is increasingly seen as a way to manage risk and negotiate better pricing.