Li Auto buys 8.79% stake

Li Auto said on September 4 that it plans to invest 2.65 billion yuan ($390 million) in Sunwoda Electric Vehicle Battery Co, the power-battery unit of Shenzhen-listed Sunwoda Electronic, in a deal that would give the automaker an 8.79% stake after the capital increase. Sunwoda disclosed the plan in a board filing the same day, saying Li Auto would subscribe for about 1.40 billion yuan of newly added registered capital in the battery unit. The transaction adds a new equity layer to a battery relationship that already ran through supply contracts, an earlier financial investment and a 50-50 joint venture. Li Auto said the investment was “not merely a financial investment” and would support longer-term cooperation in battery technology and manufacturing quality, according to reports citing the company’s statement. (finance.sina.com.cn) ### How big is the stake Li Auto is buying? Sunwoda Electronic said Li Auto would hold 8.79% of Sunwoda Power after the capital increase closes. CNEVPost reported that, together with a 2.60% stake already held through a related entity, Li Auto-related parties would indirectly hold 11.17% in total, making Li Auto the second-largest shareholder in the battery unit. (cnevpost.com) The 2.65 billion yuan investment values access to a supplier that has become more important to Li Auto’s in-house battery push. Gasgoo reported that Sunwoda Power plans to introduce Li Auto as a strategic investor through the capital increase, while Sunwoda will retain control and keep the unit within its consolidated financial statements. ### What ties did the two companies already have? (finance.sina.com.cn) Li Auto and Sunwoda’s links predate this week’s deal. Guancha, citing company disclosures, said Sunwoda Power became a battery supplier to Li Auto in 2017, and Li Auto joined a pre-A financing round in 2022 through an affiliated company with a 400 million yuan investment. In 2025, the two companies set up Shandong Li Auto Battery Co with registered capital of 300 million yuan and equal 50-50 ownership to industrialize Li Auto’s self-developed batteries, according to reports on the joint venture. (autonews.gasgoo.com) The venture was established to develop, produce and sell lithium-ion batteries for electric vehicles. (guancha.cn) ### Why does this matter for Li Auto’s battery plans? Li Auto has been building more of its battery stack in-house. Guancha reported that Li Auto’s senior vice president for vehicle electrification, Liu Liguo, had said the company began preparing self-developed battery technology as early as 2015. In June, Li Auto said the updated Li L8 lineup would come standard with a 72.7-kWh 5C range-extender fast-charging battery using core technology developed by Li Auto, while manufacturing would be handled by Sunwoda Power’s platform, according to Guancha. (theia.global) The same report said Li Auto leads work on cell-material formulas, structural systems, battery packs and battery-management systems. (guancha.cn) ### Does this replace Li Auto’s other battery suppliers? Li Auto has not abandoned a multi-supplier approach. Guancha reported that the company signed a five-year comprehensive strategic cooperation agreement with CATL in September 2025 covering ternary lithium, M3P, lithium iron phosphate and sodium-ion batteries for Li Auto models. Sunwoda Power, meanwhile, has been growing quickly in vehicle batteries. (guancha.cn) Sunwoda Electronic said first-half revenue from EV batteries reached 14.13 billion yuan, up 85.9% year on year, while shipment volume including energy-storage cells rose 76.4% to 28.36 GWh, according to Guancha’s summary of the company’s results. ### What happens next in the deal process? Sunwoda Electronic said on September 4 that its board had approved the capital increase plan and that the investment parties, Sunwoda Power, the actual controller and Sunwoda Huizhou New Energy intended to sign the capital increase agreement. (guancha.cn) The filing said Sunwoda Power’s registered capital would rise to about 15.91 billion yuan from about 14.52 billion yuan after the transaction. Li Auto’s next public milestones are likely to come through Sunwoda’s closing disclosures and the automaker’s future product updates tied to its self-developed battery program. Sunwoda’s September 4 filing and Li Auto’s subsequent model announcements will show when the equity investment is completed and how the battery partnership is used in upcoming vehicles. (finance.sina.com.cn)