Li Auto's In-House Battery Shift Targets EV Cost Reduction

Li Auto will shift its entire EV lineup to in-house battery production by Q4 2026, starting with the 2026 i6 SUV launch.

Li Auto plans to implement in-house battery production across all vehicle models by Q4 2026, beginning with the 2026 i6 electric SUV. The i6 will launch with Li Auto's 5C battery cells and Mach assisted-driving chip in Q4 2026, following pre-orders opening late September 2026. Current i6 deliveries show strong momentum in early 2025—135,863 units delivered in the first seven months—with monthly figures ranging from 15,420 to 24,198 units. However, July 2025 deliveries dropped 28.12% compared to June 2025.

This shift follows Li Auto's $390 million investment in Sunwoda EVB, securing an 8.79% stake in the battery supplier. The company began in-house battery development in 2020 and now covers battery cells, packs, and management systems. The new-generation Li Mega and i9 models will transition from CATL batteries to Li Auto's in-house 5C ternary lithium batteries after production ramp-up.

By reducing reliance on external battery suppliers like CATL, Li Auto aims to lower EV battery costs and supply chain risks for global consumers. The move could help stabilize pricing and availability for EVs—a critical need in mobility as battery costs remain a major barrier to affordable electric vehicles. Watch for delivery data and margin trends as production scales. Note: Li Auto's vehicle margins declined from 19.4% in Q2 2025 to 9.4% in Q2 2026, indicating temporary financial pressure during this transition. Delivery figures compiled by CnEVPost.

Source: CnEVPost