Li Xiang, CEO of Li Auto, recently shared insights into the company’s foundational principles, emphasizing a strong commitment to in-house manufacturing and core technology development since its inception. Addressing past skepticism about its manufacturing capabilities, stemming from its internet startup background, Li Xiang highlighted that Li Auto has always chosen a challenging yet correct path by establishing its own production facilities and R&D centers.
Building from the Ground Up
Li Xiang stated, “Manufacturing is indeed a heavy asset industry with many complex processes and procedures. At the time, many people told me it was ‘hard labor’ and advised me to start with contract manufacturing to lighten the load and test the market first. But from the very beginning, Li Auto chose the difficult but correct path.”
This commitment is evident in several key areas:
- Vehicle Manufacturing: “From the very first Li ONE, the badge on the rear only had two words – ‘Li Auto’. Every Li Auto vehicle is driven out of a factory 100% built by Li Auto. We have two major vehicle manufacturing bases in Changzhou and Beijing.”
- Core Powertrain: “We chose to self-research and self-manufacture core powertrains. We have also built our own range extender factories and electric drive factories in Changzhou, as well as a silicon carbide power module factory in Suzhou.”
- Battery Systems: “We chose to self-research and self-manufacture battery packs, with production lines distributed across Shandong, Zhejiang, and Jiangsu. We self-research battery cells through contract manufacturing, with contract manufacturing bases distributed in Sichuan and Shandong.”
- Reliability and R&D: “We have built over a hundred laboratories ourselves, distributed in Beijing, Shanghai, Changzhou, Munich, and other locations, covering a total area of over 40,000 square meters.”
Navigating Industry Doubts
Li Xiang openly admitted that Li Auto faced criticism throughout its development. “When we were developing range-extended vehicles, we were told it was ‘outdated, like farting while taking off your pants’. When we introduced new pure electric models, we were told it was ‘risky and not business-like enough’.” He believes that the easier options were never presented to Li Auto.
The company’s strategy is clear: for core components that determine user experience and require self-research and self-manufacturing to meet Li Auto’s product standards, they remain committed to in-house development. For categories where open collaboration leads to higher efficiency, they partner with the best global suppliers. “Regardless of the path chosen, the core is to keep the decision-making power of the product in our own hands, so that we can continuously ‘exceed user needs and create products that make us proud.'”
Upcoming Launch: Li Auto i9
In related news, Li Auto is set to launch its new family flagship SUV, the Li i9, on September 16th at 19:30. This new model was previously listed in the 409th batch of the “Road Motor Vehicle Manufacturers and Products Announcement” by the Ministry of Industry and Information Technology in July. The vehicle measures 5225×1970×1752mm with a wheelbase of 3168mm.
The Li i9 will be equipped with front and rear drive motors boasting maximum power of 150 kW and 250 kW, respectively, produced by Suzhou Inovance Automotive Co., Ltd. and Jiangsu Li Auto Drive Technology Co., Ltd. The vehicle will utilize a ternary lithium-ion power battery. Battery cells will be supplied by Sunwoda Electronic Co., Ltd. and contemporary Amperex Technology Co., Ltd. (CATL) Jiangsu subsidiary, while the battery pack assembly will be handled by Zhejiang Li Auto Power Battery Co., Ltd.
