Huawei HIMA Expands Battery Suppliers Beyond CATL to Cut EV Costs and Boost Growth

Huawei's Harmony Intelligent Mobility Alliance (HIMA) is expanding its battery sourcing strategy as competition intensifies in China's electric vehicle industry. The move marks a notable shift from long-standing reliance on a single supplier and reflects broader efforts to improve cost efficiency while supporting future growth targets. The strategy comes as manufacturers face increasing pressure from rising raw material costs and aggressive pricing in the mass-market EV segment. By diversifying suppliers and strengthening supply chain resilience, HIMA aims to position itself more competitively while maintaining technical standards for battery integration across its growing vehicle portfolio.

Industry sources indicate that HIMA is introducing additional power battery suppliers beyond CATL, which has historically served as the exclusive battery provider for several HIMA brands. The Aito brand is expected to add CALB and Gotion High-tech into its supply system. In particular, the Aito M6 has reportedly been designated to use Gotion's 81-kWh battery pack, ending CATL's previous sole-supplier status for the model lineup.

Gotion is said to have received a sourcing letter from HIMA last year, while CALB is also expected to enter the Aito ecosystem. This development significantly changes the earlier partnership structure established in 2022 when Seres, owner of the Aito brand, signed a five-year strategic cooperation agreement with CATL. At the time, Aito models were announced to be fully equipped with CATL batteries, reinforcing a close and exclusive relationship between the companies.

The partnership between Aito and CATL deepened further in 2025 when CATL established a production line inside Aito's factory. This represented the first implementation of CATL's "factory-within-a-factory" model. However, market conditions and cost pressures have prompted HIMA to reassess its sourcing strategy and seek additional battery suppliers capable of meeting technical and economic requirements.

The diversification effort extends beyond Aito. Luxeed, the electric vehicle brand jointly developed by Huawei and Chery, is also expected to add Gotion and Sunwoda as suppliers. Previously, Luxeed sourced batteries primarily from CATL and CALB. Additionally, Gotion's 81-kWh lithium iron phosphate battery pack could be deployed in future models under Shangjie, the EV brand jointly created by Huawei and SAIC Motor.

Reports indicate that HIMA is currently conducting pre-mass-production audits at Gotion facilities, while Huawei personnel have been stationed at cell production lines to oversee quality and compliance. Huawei itself does not directly procure batteries but instead establishes technical requirements through its "Giant Whale Battery" platform. Battery suppliers can enter HIMA's ecosystem only after meeting these stringent performance and safety benchmarks.

At the Greater Bay Area Auto Show held earlier this month in China, both CALB and Gotion prominently displayed the "Giant Whale Battery" branding at their exhibition booths. The display highlighted growing alignment between Huawei's battery standards and the capabilities of emerging battery manufacturers seeking greater participation in the EV supply chain.

Estimated Cost Advantage of Alternative Battery Suppliers

One of the primary motivations behind HIMA's supplier diversification is cost reduction. Industry sources suggest that battery quotes from Gotion and Sunwoda are approximately 10% lower than CATL's for lithium iron phosphate battery packs with similar capacity. This price gap could create significant savings as production volumes increase and competition intensifies in the EV sector.

For an 81-kWh battery pack, a 10% price difference may translate into savings of nearly 2,000 yuan per vehicle. At scale, such reductions become strategically important for automakers facing increasing component costs and tightening profit margins.

The pressure to reduce costs is evident across the broader automotive industry. Seres Chairman Zhang Xinghai recently stated that average per-vehicle costs for the Aito brand have increased by 15,000 to 20,000 yuan. Rising prices for memory chips and lithium carbonate have further intensified challenges for EV manufacturers striving to maintain competitive pricing.

HIMA's battery strategy is also closely linked to ambitious sales targets. Huawei executive director Richard Yu has previously stated that HIMA aims to deliver between 1 million and 1.3 million vehicles in 2026. However, from January through May, total deliveries reached approximately 192,000 units, with more than 130,000 units contributed by Aito. This heavy reliance on a single brand underscores the need for broader market expansion.

The mass-market segment is increasingly important as competitors such as Xpeng and Xiaomi continue to pursue aggressive pricing strategies. Earlier today, Aito introduced two new battery electric versions of the M6 with a starting price of 229,800 yuan, representing a reduction of 50,000 yuan compared with previous BEV pricing. Such moves reflect growing pressure to balance affordability with profitability.

Despite reports of supplier expansion, sources close to HIMA indicate that the arrangements remain subject to change until regulatory filings for upcoming vehicle models are officially published. Meanwhile, CATL is reportedly evaluating its pricing strategy in an effort to retain HIMA business and defend its position within one of China's most influential EV ecosystems.

Frequently Asked Questions

Why is HIMA adding battery suppliers beyond CATL?
HIMA is expanding its supplier network primarily to reduce battery costs and strengthen supply chain flexibility. The company faces growing pressure from rising material prices and intense competition in China's EV market. By introducing suppliers such as Gotion and CALB, HIMA can potentially lower procurement expenses while reducing reliance on a single provider. This strategy also supports future production scale-up and helps maintain competitiveness in the rapidly expanding mass-market electric vehicle segment.

What impact could lower battery costs have on HIMA's growth?
Lower battery costs can significantly improve vehicle profitability and pricing competitiveness in the EV industry. Savings of nearly 2,000 yuan per vehicle may become substantial when production volumes increase. Reduced component costs can enable HIMA to launch more affordable models, support aggressive sales targets, and expand market share. As competition intensifies among Chinese EV manufacturers, cost-efficient sourcing strategies may become an important factor in sustaining long-term growth and improving operational efficiency.