Li Auto Pours $390M into Sunwoda’s Battery Unit, Becomes Second-Largest Shareholder

Li Auto is making a significant move in its supply chain strategy by investing $390 million in Sunwoda Electric Vehicle Battery (EVB), the power battery arm of Sunwoda Group. The deal will see Li Auto directly acquire an 8.79% stake in Sunwoda EVB, with its related entities collectively holding a combined stake of 11.17%. This investment positions Li Auto as the second-largest shareholder of the battery manufacturer, highlighting the EV maker’s commitment to securing battery supply for its growing vehicle lineup.

The investment comes at a time when major Chinese EV makers are increasingly looking to vertically integrate their battery supply chains to reduce costs and ensure stable production amid rising competition. For Li Auto, which currently relies on external suppliers for its extended-range and battery-electric vehicles, this partnership is expected to strengthen its negotiating power and potentially lead to more customized battery solutions in the future.

Sunwoda EVB, a subsidiary of the electronics giant Sunwoda Group, has been expanding its presence in the EV battery market, focusing on prismatic and pouch cells. The fresh capital from Li Auto will likely accelerate its R&D efforts and production capacity expansion, enabling it to meet the growing demand from not only Li Auto but also other automakers. As the EV market in China continues to mature, such strategic investments are becoming a common theme, reflecting the deepening interdependence between carmakers and battery suppliers.