BUSINESS

Xiaomi Diversifies Battery Supply Chain With Sunwoda Deal

Published: Nov. 2, 2026 3:40 p.m. GMT+8

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A CATL battery on display at an exhibition. Photo: VCG

A subsidiary of Xiaomi Corp. is set to invest 1.7 billion yuan ($255 million) for a 5.34% stake in a battery unit of Sunwoda Electronic Co. Ltd., making the hardware giant its third-largest shareholder.

The investment underscores a growing trend among Chinese electric vehicle (EV) manufacturers which are diversifying their battery supply chains to reduce heavy dependence on industry giant Contemporary Amperex Technology Co. Ltd. (CATL).

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Xiaomi will invest 1.7 billion yuan ($255 million) for a 5.34% stake in Sunwoda’s battery unit (SEVB), becoming its third-largest shareholder.
This move reflects Chinese EV makers diversifying battery supply chains to reduce reliance on dominant supplier CATL, whose stock has nearly halved from its May peak.
CATL is pivoting to battery swapping, securing partnerships with Dongfeng and Sinochem, to counter investor concerns and shifting automaker strategies.

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Who’s Who

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What Happened When

2026-05-07：: CATL's stock reached its year-to-date peak.

2026-08：: CATL's board approved a 20 billion yuan to 40 billion yuan share buyback plan.

2026-09：: Li Auto Inc. injected capital into SEVB and established a joint factory for self-developed batteries, with plans to switch all vehicles to its own batteries except initial batches of MEGA and i9 models.

2026-09-04：: Xiaomi announced strategic partnerships with SEVB and CALB Group Co. Ltd.

2026-09：: CATL launched a campaign to showcase battery product advantages.

2026-10-29：: Sunwoda Electronic announced a transaction where Xiaomi's subsidiary will invest 1.7 billion yuan for a 5.34% stake in its battery unit, SEVB.

2026-10-29：: CATL reached a strategic agreement with Dongfeng Motor Corp. for battery-swapping vehicle models, and partnered with Sinochem Petroleum Sales Co. Ltd. for charging and battery-swapping stations.

Before 2026-10-29：: CATL forged a battery-swapping alliance with Shenzhen Yinwang Intelligent Technology Co. Ltd.

Over the past year (as of 2026-10-29)：: CATL signed battery-swapping agreements with Chongqing Changan Automobile Co. Ltd., Chery Automobile Co. Ltd., Guangzhou Automobile Group Co. Ltd., and Seres Group Co. Ltd.