Li Auto takes $393M stake in battery maker Sunwoda EVB at $4.5B valuation
What's the deal? Li Auto will invest $393.4 million (AUD 546.7 million) in Sunwoda Power Technology, becoming the second-largest shareholder in the Chinese battery maker. The automaker will subscribe to newly issued shares for an 8.79% direct stake, or 11.17% including related entities.
The terms: The late-stage round values Sunwoda EVBDealroom has a profile for this one. Try Dealroom → at $4.5 billion after the investment, up from $4.1 billion before it. Pricing matches the company's earlier Series C and Series C+ rounds. The deal has board approval and does not require a shareholder vote.
Why now? Li Auto plans to start using in-house batteries in more models in the second half of 2026. It has built research capabilities in cell systems, battery packs, thermal management, and battery management algorithms.
The company already has ties to Sunwoda. It invested $59.4 million in a Pre-A round in 2022, and in 2025 the two formed a 50-50 joint venture, Shandong Li Auto Automobile BatteryDealroom has a profile for this one. Try Dealroom →, to produce Li Auto-developed batteries.
What's the endgame? Li Auto is deepening control over its battery supply chain while keeping options open. In September 2025 it signed a five-year deal with CATL covering safety, ultra-fast charging, and domestic and overseas operations.
By the numbers: Sunwoda EVB posted revenue of $2.3 billion in the first half of 2026 but a net loss of $48.1 million. In July 2026 it installed 2.66 GWh of batteries in China, ranking seventh with a 3.59% market share, according to the China Automotive Battery Innovation Alliance.
Sunwoda's own stake, held through a subsidiary, drops from 26.38% to 24.06% after the deal but keeps control of the unit, which it will continue to consolidate.
The signal: The round sits in the top 1% of late-stage venture deals in China's energy sector over the past four years, underlining how automakers are buying into battery makers to lock in advanced technology and stable supply.
Read more: theelectricviking.com
Image credit: Generated with Gemini
