Sunwoda will supply batteries for Xiaomi's third model, codenamed "Kunlun," as well as Li Auto's Li M7 and Li M8, according to local media.
Chinese battery maker Sunwoda's EV battery unit, Sunwoda Electric Vehicle Battery Co Ltd (Sunwoda EVB), has been named as the supplier for new models from Xiaomi (HKG: 1810, OTCMKTS: XIACY) and Li Auto (NASDAQ: LI), according to a new report.
Sunwoda EVB will supply batteries for Xiaomi's third model, codenamed "Kunlun," as well as Li Auto's Li M7 and Li M8 battery electric vehicles (BEVs), local media outlet 36kr said in a report today, citing several industry chain sources.
Xiaomi officially launched its first electric vehicle (EV) model, the SU7, on March 28, offering three versions -- standard, Pro, and Max -- with starting prices of RMB 215,900 ($29,740), RMB 245,900, and RMB 299,900, respectively.
On May 13, Bloomberg reported that Xiaomi is aiming to start producing and selling an SUV (sport utility vehicle) model similar to Tesla's (NASDAQ: TSLA) Model Y as early as 2025.
Xiaomi's third model will be strictly cost oriented and positioned in the RMB 150,000 class, the 36kr report today said.
This was one of the key factors for Xiaomi's selection of the Sunwoda EVB, with the battery likely to be quoted at under RMB 0.5 yuan per Wh, according to 36kr.
Currently the only battery suppliers for Xiaomi's SU7 are CATL and BYD (HKG: 1211, OTCMKTS: BYDDY), the report noted, adding that there have been multiple previous rumors of Xiaomi's third vehicle being a hybrid.
Sunwoda has gained the needed experience through its previous partnership with Li Auto, which focuses on hybrid models, according to the report.
Li Auto, whose initial battery supplier was only CATL, announced the introduction of Sunwoda EVB as well as Svolt Energy as additional suppliers on February 8, 2023, when it launched the Li L7 extended-range electric vehicle (EREV).
Li Auto had originally planned to launch three BEVs in the second half of this year, but after the weak performance of its first BEV, the Li Mega, the launch of more BEVs are delayed until the first half of 2025, its management said in a May 20 earnings call.
Sunwoda's main business was consumer batteries, but its power battery business has grown rapidly in recent years.
Sunwoda EVB was founded in Shenzhen on October 29, 2014, and its controlling shareholder, Sunwoda, directly owns 39.69 percent of the shares, according to an October 2023 filing for an initial public offering.
Among second-tier battery makers, Sunwoda is known for its fast-charging technology, with its fast-charging battery, the SFC480, being mass-produced in 2022 with the launch of Xpeng's (NYSE: XPEV) G9 SUV, the 36kr report noted.
Sunwoda's battery's fast-charging capability matches Li Auto's design needs, the report said.
Sunwoda, a relatively small battery maker compared to CATL and BYD, ranked sixth in China's EV battery market in May with a 2.91 percent share, according to the China Automotive Battery Innovation Alliance (CABIA).
($1 = RMB 7.2605)
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