[News] Xiaomi EV Reportedly Finalizes Battery Supplier List, CALB and CATL Chosen

2023-08-24 Emerging Technologies / Energy editor

According to sources familiar with the matter within Xiaomi, as cited by Chinese media outlet Jiemian News, the Xiaomi electric vehicle that has been spotted multiple times on the roads has finalized its battery supplier list. Both selected suppliers are Chinese companies. The primary battery supplier is set to be CALB, while the secondary supplier is the well-known CATL.

Reports indicate that Xiaomi initially planned to have CATL as the primary supplier, but there was a change of plan. This change could be attributed to the conclusion of patent disputes between CATL and CALB regarding lithium-ion batteries, cathode electrode sheets, and battery-related patents. The National Intellectual Property Administration invalidated the two aforementioned patents held by CATL, allowing CALB to re-enter the market with competitive pricing against CATL.

The report mentions that Xiaomi’s initial electric vehicle production volume is relatively low, which limits its bargaining power. The cost per battery pack starts at 80,000 RMB, accounting for approximately half of the overall cost. The proportion of supplies from the primary and secondary suppliers will reportedly be adjusted based on Xiaomi electric vehicle’s actual sales after its launch. The report also highlights the possibility of Xiaomi introducing additional battery suppliers like BYD through an open bidding process to lower battery costs and enhance bargaining capabilities in the future.

(Photo credit: Xiaomi FB)