Li Auto In-House Batteries Expand Across Full Lineup

Li Auto is preparing to expand its use of internally developed batteries across its vehicle lineup, with the 2026 Li i6 electric SUV set to receive the company's own 5C battery and Mach assisted-driving chip in the fourth quarter. Pre-orders are scheduled to open in late September, followed by deliveries beginning in early November. The five-seat all-electric SUV originally launched in September 2025, and the updated version will add more internally developed core components to a model that has become an important contributor to Li Auto's sales.

The Li i6 has recorded 135,863 deliveries during the first seven months of 2026. July deliveries reached 15,420 vehicles, a 28.12% decline from June, although the model still represented about half of Li Auto's monthly deliveries. The figures show why the company's decision to introduce internally developed battery and chip technology on the updated Li i6 is significant: the shift places proprietary components into a high-volume product while the automaker is also working to manage rising vehicle costs.

Li i6 Monthly Deliveries in 2025 and 2026

The delivery record shows the Li i6's monthly volume across the two years, with 2026 figures available from January through July and 2025 figures reported from September through December. July 2026 deliveries declined from June, but the model continued to account for a substantial portion of Li Auto's monthly vehicle volume.

Li Auto said its internally developed batteries are already installed in the Li L8, Li L6 and Li i8, and the company plans to extend their use to every model. The new-generation Li Mega is initially being delivered with 5C ternary lithium batteries supplied by CATL, but production preparations will enable a full transition to Li Auto's own 5C ternary lithium batteries. The company said strong early orders for the new-generation Li Mega pushed CATL battery inventories close to depletion, adding urgency to the planned component transition.

Customers who lock in Li Mega orders at or after 3:00 p.m. Beijing Time on September 7 will receive vehicles equipped with Li Auto's internally developed batteries, with deliveries expected to start in November. Li Auto launched the new-generation Li Mega on September 2 with a lower price and substantial hardware upgrades aimed at strengthening demand for its flagship all-electric MPV. Initial deliveries began September 5. The Li i9, a six-seat all-electric SUV scheduled to debut in mid-September, will likewise start with CATL 5C ternary lithium batteries before switching entirely to Li Auto's batteries as production ramps up.

Li Auto began developing battery cells internally in 2020 and now says its capabilities span 5C cells, battery packs and the battery management system. The company believes combining battery and vehicle design with experience in 5C ultra-fast charging can support battery quality, safety and long service life. Development of the Mach assisted-driving chip started in 2022, and Li Auto plans continued investment in future versions. Together, the battery and chip programs indicate a broader effort to bring key vehicle technologies under direct development rather than relying entirely on external component suppliers.

The technology shift is occurring alongside a deeper investment in Sunwoda's battery operations. Sunwoda disclosed on September 4 that Li Auto plans to inject capital into Sunwoda Electric Vehicle Battery Co Ltd, resulting in Li Auto directly holding an 8.79% stake and becoming its second-largest single shareholder. The two companies formed a 50-50 joint venture in 2025 to manufacture batteries developed by Li Auto. This structure gives Li Auto a closer role in the manufacturing ecosystem while retaining a partnership model for scaling battery production.

Greater use of internally developed components is also part of Li Auto's response to cost pressure. The company's vehicle margin fell to 9.4% in the second quarter from 19.4% a year earlier, highlighting the financial importance of controlling production costs. During its August 26 earnings call, management said integrated design, in-house technology and supply chain optimization would be used to manage expenses. Li Auto also said it had decided not to pass the latest cost increases on to customers, making efficiency gains increasingly important to protecting margins.

Industry Impact & Outlook

Li Auto's broader deployment of internally developed batteries could strengthen control over component design, vehicle integration and supply economics as the company seeks to protect margins under cost pressure. Extending proprietary technology from the Li i6 to the Li Mega and Li i9 also increases the importance of manufacturing readiness and supply-chain execution, particularly as the company works with Sunwoda while transitioning some models away from CATL batteries. If the planned rollouts proceed as stated, the strategy could give Li Auto greater flexibility over battery specifications and future vehicle development while increasing its responsibility for technology investment, production scaling and quality management.

Frequently Asked Questions

What is Li Auto's strategy for internally developed batteries?
Li Auto is expanding internally developed battery and chip technology across its lineup to gain greater control over core components and manage costs. The 2026 Li i6 will use Li Auto's in-house 5C battery and Mach assisted-driving chip, with pre-orders opening in late September and deliveries beginning in early November. Li Auto already uses its batteries in the Li L8, Li L6 and Li i8. The Li Mega and Li i9 will also transition from CATL batteries to Li Auto's batteries as production preparations and manufacturing capacity progress.