Li Auto increased its stake in Sunwoda and Xiaomi’s Pengcheng series has
activated cells from Zhongchuangxinhang and Sunwoda, as multiple automakers
reconfigure battery supply chains and China’s power battery supply landscape
enters a concentrated adjustment phase. The shift is driven by a long-running
imbalance in industry profit distribution: batteries account for about 30–40% of
vehicle costs and are the single largest EV component. Public data show eight
mainstream battery makers posted combined 1H profits of about 50.8 bln yuan,
versus roughly 25.1 bln yuan for 23 listed automakers; excluding top automakers,
average profits at remaining carmakers are low. Ruipu Saike executive Peng
Jianhe said whether the current multi-sourcing expansion endures depends on
three variables: (1) whether second-tier battery makers can build product
competitiveness across the full battery lifecycle or risk “volume without
margin”; (2) the pace of OEM in-house battery development, which could absorb
incremental demand; and (3) the commercialization timing of new technologies
such as solid-state and sodium‑ion cells, since technology shifts often reshape
industry structure. He described second-tier suppliers as being in a
“qualification stage,” not yet in the final round.
