By 2026, China's new energy vehicle market has evolved from an early-stage race over electric motors, batteries, and electronic controls into a systemic contest centered on battery technology roadmaps, supply chain depth, and cost-control capabilities. Leading domestic players — NIO, Li Auto, XPeng, BYD, and Leapmotor — have each charted a distinctly different path in their battery strategies. What lies beneath these divergent choices is not merely a matter of technical preference, but a reflection of fundamentally different business models, brand identities, and competitive philosophies. NIO: Anchored by Battery Swapping, Building a Multi-Supplier, Multi-Chemistry Matrix NIO's battery strategy stands apart within the industry. At its core is not the choice of a single supplier or chemistry, but rather a battery-swapping network serving as infrastructure, upwardly compatible with battery packs of varying capacities, chemistries, and suppliers. Currently, NIO's lineup runs primarily on 75 kWh and 100 kWh packs, while a higher-energy-density 150 kWh semi-solid-state pack, produced by WeLion New Energy, has already entered volume production and deployment. On the chemistry front, certain NIO models employ a hybrid cell arrangement blending ternary lithium and LFP cells — the LFP cells provide foundational range and cost advantages, while the ternary cells serve as a state-of-charge reference, addressing the well-known pain point of inaccurate SOC estimation inherent to LFP's flat voltage curve. On the supplier side, CATL has long held a core position, with CALB and WeLion also playing significant roles in the supply chain. In early 2026, NIO and CATL further signed a five-year comprehensive strategic cooperation agreement covering long-life batteries, swap-station compatibility, and overseas market expansion. For the full year 2025, NIO Group delivered 326,000 vehicles, up 46.9% year-on-year, and achieved its first quarterly operating profit in Q4 — signaling that its battery-swapping business model is beginning to enter a virtuous cycle. The ramp-up of its two sub-brands, ONVO and Firefly, has further amplified the scale effects of the swapping ecosystem, diluting the per-unit cost of infrastructure. Li Auto: EREV-Led, BEV in Pursuit — Deep Supplier Ties and the Shift Toward In-House Development Li Auto's battery strategy presents a sharp contrast to NIO's. Where NIO pursues breadth in its swapping network and flexibility in battery pack compatibility, Li Auto places greater emphasis on deep ties with top-tier suppliers and meticulous cost-side management. Li Auto's EREV models have long relied on ternary lithium batteries as their primary solution and are now progressively introducing LFP to optimize vehicle cost structures. In the pure-electric domain, the flagship MPV MEGA carries a high-performance ternary pack co-developed with CATL; in 2025, the i6 electric SUV formally adopted a dual-supplier model, sourcing from both CATL and Sunwoda for complementary supply. More significantly, in September 2025, Li Auto and Sunwoda jointly established a battery company, marking a definitive shift from a procurement relationship to one of equity-linked co-development. In May 2026, Li Auto delivered 33,350 vehicles, with the i6 surpassing 20,000 monthly deliveries for the third consecutive month and ranking among the top three electric SUVs by volume, while the EREV L-series remained its sales backbone. With "family comfort" as its core brand proposition, Li Auto's battery strategy has always served a single through-line: eliminating range anxiety while optimizing total cost of ownership — pragmatic and focused. XPeng: LFP as the Mainstay, a Three-Supplier Landscape Taking Shape, and the Dual-Powertrain Strategy Accelerating XPeng's battery strategy is centered on LFP, with a stable landscape of three core suppliers: CALB, EVE Energy, and FinDreams Battery (BYD). CALB has been one of XPeng's first-tier battery suppliers since 2021 and has long held the dominant share. In September 2025, EVE Energy formally entered XPeng's MONA series supply chain, providing prismatic cell solutions for base MONA variants, while longer-range versions continue to use BYD FinDreams cells. XPeng's technology identity has always revolved around full-stack self-developed AI — spanning advanced intelligent driving, proprietary chips, and large-model integration — which gives its battery strategy a notably pragmatic character: choose a mature, safe, and cost-controllable LFP route so that more resources can be concentrated on its core competence in intelligence. Since 2025, XPeng has fully embraced a dual-powertrain strategy of BEV plus EREV, with the addition of range-extender models introducing new variables to its battery demand structure. In May 2026, XPeng Group delivered 32,158 vehicles, with the flagship SUV GX becoming a core incremental contributor right from its debut, while the MONA series and P7+ continued to scale, validating the market appeal of its "technology for all" positioning. BYD: Full Vertical Integration as the Ultimate Moat If NIO, Li Auto, and XPeng respectively embody the brand paths of "service-driven battery swapping," "family comfort," and "technology intelligence," then BYD's defining label points squarely at vertical integration. From FinDreams battery cells and FinDreams Powertrain motors and electronic controls, to in-house IGBT and SiC power semiconductors, BYD has mastered the manufacturing of virtually every core component in a new energy vehicle — a level of supply chain depth unmatched both domestically and globally. The Blade Battery, BYD's signature technology, builds on an LFP foundation and achieves a balance of safety and energy density through structural innovation; it has now achieved scaled deployment across the entire lineup. On the cost side, the scale effects of selling 4.6 million units in 2025 have endowed BYD with extreme supply chain bargaining power. On the technology side, the "Eye of the Gods" advanced driver-assistance system has been deployed in over 2.5 million vehicles, generating more than 160 million kilometers of real-world driving data daily — a data flywheel that competitors will find difficult to replicate. In 2025, BYD's battery-electric vehicle sales reached 2.26 million units, surpassing Tesla (approximately 1.63 million) for the first time to claim the global BEV sales crown. From the Seagull at RMB 70,000 to the Yangwang at over RMB 1 million, from city commuters to hardcore off-roaders, BYD has built the world's most complete new energy product matrix, with its multi-brand strategy covering every mainstream price band and use case. Leapmotor: Full-Stack Self-Development Driving Extreme Value, Multi-Supplier Strategy Fueling the Volume Leap Leapmotor has emerged as a dark horse that can no longer be ignored among China's new-energy startups. Its battery strategy is defined by a clear formula: all-LFP plus parallel multi-sourcing, with core cell suppliers including Gotion High-Tech and CALB, among others — different batches of the same model may mix cells from different brands, but core parameters remain consistent. In November 2025, Leapmotor and CALB jointly established a battery factory, signaling Leapmotor's progression from multi-source procurement toward equity-linked core-supplier relationships. Leapmotor's true moat lies in its full-stack self-development approach — over 65% of core components are developed in-house, spanning electric drives, battery BMS, intelligent cockpits, and autonomous-driving chips. This is what enables Leapmotor to deliver extreme value in the RMB 100,000–200,000 mainstream price band. In May 2026, Leapmotor delivered 81,569 vehicles, up 81% year-on-year, holding the new-energy startup sales crown for multiple consecutive months, with the one-million-unit annual target now within reach. Leapmotor's product matrix has expanded into four series — A, B, C, and D — covering sedans, SUVs, and MPVs, while overseas exports have rapidly climbed to over 37% of total volume, becoming a second engine for growth. The Industrial Logic Behind Divergent Strategies When the battery strategies of these five automakers are examined side by side, several clear industrial patterns emerge. First, LFP's dominance in the mainstream market continues to strengthen. Whether it is BYD's Blade Battery, XPeng's all-LFP lineup, Leapmotor's extreme value proposition, or Li Auto's progressive LFP adoption in its EREV models, all point to the same trend: in the RMB 100,000–250,000 core consumption band, LFP's combined advantages in cost, safety, and cycle life have made it an unshakable baseline. Second, supply chain relationships are upgrading from simple buyer-seller transactions to capital-linked co-development. The joint ventures between Li Auto and Sunwoda, between Leapmotor and CALB, and the five-year agreement between NIO and CATL are all reflections of this trend. Third, battery strategy choices are increasingly dictated by each automaker's business model: NIO's battery-swapping system demands pack standardization and compatibility; BYD's vertical integration demands in-house production; Li Auto's EREV approach imposes unique requirements on battery capacity and cost. For participants in the upstream lithium resource and battery materials industries, understanding the battery strategies of leading automakers — and the direction in which they are evolving — is a critical entry point for gauging mid- and downstream demand structures, the cadence of technology-route shifts, and the changing landscape of supply chain dynamics. In this industrial contest that remains very much at halftime, the divergence in battery strategies not only determines each automaker's cost structure and product competitiveness, but will also profoundly reshape the value distribution across the entire lithium battery supply chain.

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After both sodium-ion battery cathodes and hard carbon anodes recorded significant increases YoY and MoM in May, the midstream and downstream segments of the industry chain—electrolytes and battery cells—also delivered impressive results, yet structural issues lurk beneath the growth.

[Secondary Lead Market Update] Downstream battery producers' purchase willingness was weak. Today, some lead-acid battery groups proposed a secondary refined lead price down by 50 yuan/mt from yesterday, while a few enterprises with high inventories of raw material lead ingots proposed a price down by 25 yuan/mt.

Material Prices: Most solid-state battery materials declined. LPSC dropped 5.5% to RMB 7,280/kg, Li₂S fell 3.8% to RMB 1,530/kg, Li metal and LFP fell 1.7% and 1.4% respectively. Only P₂S₅ rose 2.6%. Oxide electrolytes (LATP, LLZO) were flat.