Li Auto and SEVB, the battery unit of Sunwoda, have formed a 50-50 joint venture focused on producing and selling lithium-ion batteries for electric vehicles. Registered with the Shanghai Administration for Market Regulation and legally established in Shandong, the new entity will manufacture Li Auto’s self-developed battery cells, which are expected to appear in vehicles as early as next year.
Unlike its co-development arrangement with Contemporary Amperex Technology (CATL), Li Auto regards the partnership with SEVB as a fully in-house project. Li Auto leads the design of cell chemistry, structural layouts, and materials selection, while SEVB provides manufacturing expertise. The automaker has built an internal battery research and development team of more than 200 engineers, and president Ma Donghui reviews project milestones approximately every two weeks. A key focus is on 5C ultrafast-charging technology, encompassing advanced chemistry, module design, and battery management system algorithms.
Analysts say the joint venture underscores Li Auto’s intent to brand and control core components. Chairman and CEO Li Xiang previously categorized supply chain collaborations into three models: fully self-developed and produced, self-developed and outsourced, and pure external procurement. The SEVB JV falls into the fully self-produced category, following Li Auto’s similar ventures—Huixiang for electric drive systems and Sike Semiconductor for silicon carbide components.
Batteries account for about 30–35% of an EV’s total cost, making them a strategic priority. On the same day as the JV announcement, Li Auto also signed a five-year strategic cooperation agreement with CATL, signaling a broader diversification strategy to manage costs and secure supply through multiple partners.
SEVB began serving Li Auto in 2017. In 2022, Li Auto invested RMB 400 million in SEVB’s EV battery division, gaining a 3.22% stake. A dedicated production division for Li Auto has grown from 1,300 to 1,700 employees, and SEVB now supplies 30% of Li Auto’s battery needs. The companies have integrated manufacturing and vehicle data systems to develop a joint battery early-warning model, paving the way for the new venture.
Currently, SEVB batteries are used in Li Auto’s L6, L7 Air, and L8 Air models, with the upcoming i6 set to draw cells from both SEVB and CATL. The JV is expected to increase SEVB’s shipment volumes and margins, while providing Li Auto with a stable, branded battery supply. SEVB is also pursuing joint ventures with other automakers, including Dongfeng Motor and Geely, to expand its presence in the growing EV market.
Source: KrASIA
