• Li Auto and CATL will also collaborate to expand domestic and international operations, jointly advancing battery technology innovation and global deployment.
• CATL will provide high-performance, high-safety, and high-quality power battery systems for Li Auto's entire product lineup.

Li Auto (NASDAQ: LI) and its primary battery supplier CATL (HKG: 3750) have reached a new agreement to deepen their collaboration.

The two companies signed a five-year comprehensive strategic cooperation agreement on September 18, with Li Auto founder, chairman, and CEO Li Xiang, and CATL founder, chairman, and CEO Robin Zeng attending a signing ceremony, according to a statement released today.

The two parties will engage in deep cooperation in areas such as battery safety and supercharging technology, according to CATL's statement.

Li Auto and CATL will also join hands to expand domestic and international business operations, jointly driving battery technology innovation and global deployment, the statement said, implying the partnership will extend to overseas markets.

CATL said it will supply high-performance, high-safety, and high-quality power battery systems for Li Auto's entire product lineup, including but not limited to ternary lithium batteries, M3P batteries, lithium iron phosphate (LFP) batteries, and sodium-ion batteries.

To date, cumulative deliveries of Li Auto vehicles equipped with CATL batteries have surpassed 1 million units, with no thermal runaway incidents ever occurring due to battery-related causes, the battery manufacturer noted.

CATL serves as Li Auto's primary battery supplier. Since Li Auto's founding in 2015, CATL has participated in its product strategy as a power battery provider.

In March 2024, Li Auto launched the Li Mega electric MPV (multi-purpose vehicle), featuring a battery pack jointly developed with CATL that supports 5C ultra-fast charging. This makes Li Auto one of the earliest Chinese automakers to adopt such battery technology.

On June 11, the one-millionth CATL battery pack for Li Auto rolled off the production line, marking a milestone in the collaboration between the two companies.

Li Auto initially used only CATL batteries but introduced Sunwoda and Svolt Energy as additional suppliers when launching the Li L7 extended-range SUV in February 2023.

Currently, Li Auto uses batteries from Sunwoda and Svolt Energy only in certain lower-priced model variants.

The automaker will launch its second pure-electric SUV, the Li i6, on September 26, with CATL and Sunwoda serving as battery suppliers.

CATL is the world's largest power battery manufacturer, maintaining its top position with a 37.5 percent market share from January to July, according to data from South Korean market research firm SNE Research.

In August, CATL's power battery installations in China reached 26.45 GWh, retaining its number one ranking with a 42.35 percent share, according to data from the China Automotive Battery Innovation Alliance (CABIA).