Xiaomi Takes 5.34% Stake in Sunwoda EVB, Joins Li Auto as Third-Largest Shareholder

Sunwoda announced that its subsidiary, Sunwoda Electric Vehicle Battery Co., Ltd., plans to bring in Hanxing Venture Capital Co., Ltd., a wholly owned subsidiary of Xiaomi, through a capital increase.

Hanxing Venture Capital will invest RMB 1.7 billion ($255.2 million) to subscribe to RMB 897.805 million ($134.78 million) in newly registered capital at Sunwoda SEB.

Upon completion of the transaction, it will hold a 5.34% stake in the company.

Following the capital increase, Xiaomi will become Sunwoda SEB’s third-largest shareholder, behind parent company Sunwoda and Li Auto, which holds the second-largest stake.

Sunwoda EVB’s post-money valuation reaches approximately RMB 31.835 billion ($4.78 billion), while Li Auto’s equity stake is diluted from 8.79% to 8.32%.

The collaboration between Xiaomi and Sunwoda EVB builds upon previous strategic ties.

In September, Xiaomi Auto announced a strategic partnership with CALB and Sunwoda SEB to develop the “Xiaomi Longjia Battery.”

Under the arrangement, Sunwoda EVB oversees battery cell manufacturing and operates dedicated customized production lines to supply Xiaomi’s SkyNomad EREV models.

Beyond its equity investment in Sunwoda SEB, Li Auto is also pushing ahead with the large-scale deployment of its in-house battery technology.

In a battery roadmap released on September 7, the company said its self-developed batteries would gradually be introduced across its entire model lineup from the second half of 2026.

More recently, some Li Auto MEGA orders originally scheduled to use CATL batteries have faced changes to their battery allocations.

Some customers were told that their vehicles would instead use Li Auto’s self-developed Lianshan batteries, with delivery schedules also affected.

CATL has historically been a major battery supplier to several leading automakers.

As vehicle production scales up, battery technology strategies diverge and supply reliability becomes a greater concern, automakers are increasingly seeking to diversify their supply chains through in-house development, multiple suppliers and equity investments.

Xiaomi and Li Auto’s investments in Sunwoda SEB reflect both the need to secure battery supplies for existing vehicle programs and their longer-term interest in strengthening supply capacity.

Financial results, however, show that Sunwoda has continued to expand revenue without translating that growth into higher profits, even as its battery subsidiary attracts investment from two automakers.

In the first nine months of 2026, Sunwoda reported revenue of RMB 63.462 billion ($9.53 billion), up 45.78% year on year. Net profit attributable to shareholders fell 56.37% to RMB 613 million ($92 million).

Third-quarter revenue reached RMB 25.284 billion ($3.8 billion), up 52.78% year on year, while net profit attributable to shareholders plunged 98.08% to just RMB 10.5671 million ($1.6 million).

The divergence between revenue growth and falling earnings indicates that business expansion has yet to translate into a corresponding improvement in profitability.

Sunwoda also recently announced that it had terminated plans for a Hong Kong IPO.

The company said the decision followed a comprehensive assessment of market conditions, changes in its business operations and its medium- to long-term development plans.

With Xiaomi’s entry and Li Auto’s increased stake, Sunwoda EVB has secured new strategic shareholder resources.

The alignment with automaker partners acting concurrently as equity holders and buyers is expected to enhance capacity utilization and order stability, supporting future profitability.