Chinese electric vehicle maker Li Auto is substantially increasing its stake in battery producer Sunwoda EVB through a 2.65 billion yuan investment—roughly $390 million—in newly issued equity. Once the deal closes, Li Auto will own 8.79% directly, positioning itself as the company's second-largest shareholder. When combined with holdings through two subsidiary entities, the automaker's total indirect ownership will reach 11.17%.
Building on Earlier Partnership
This move extends a relationship that began in 2022, when a Li Auto subsidiary committed 400 million yuan to Sunwoda EVB. Subsequent capital raises diluted that initial stake, which had been approximately 3.2% at the outset.
During 2025, Li Auto and Sunwoda established a battery joint venture split equally between both parties. This venture concentrates on producing battery packs engineered according to Li Auto's specifications.
Multi-Supplier Strategy Continues
Li Auto characterizes the new investment as more than a financial play. The two organizations intend to collaborate over the long term on battery innovation, quality assurance, and scaling production. Li Auto will set product specifications and engineering targets, while Sunwoda EVB manages the technical development, manufacturing operations, and logistics.
Simultaneously, Li Auto is advancing proprietary battery technology. The company plans to introduce vehicles powered by its own batteries beginning in the second half of 2026. Nevertheless, the automaker maintains a diversified supplier base and continues its established relationship with CATL.
Source: Battery-News
