Li Xiang, CEO of Li Auto, has emphasized the critical importance of automakers delving into core battery technologies. In a recent long post, he articulated his vision for technological self-sufficiency, asserting that deep dives into battery tech by vehicle manufacturers are ultimately beneficial for the industry’s growth and consumer interests.
According to Xiang, a massive industry requires a two-pronged approach to advance: one leg being specialized suppliers with a profound understanding of their products, and the other being the main manufacturers who thoroughly research core technologies. He believes this alternating stride is what propels the entire industry forward, with users being the ultimate beneficiaries. Conversely, he warned that relying on a single approach, like “hopping on one leg,” is unsustainable and can lead companies into an arms race for scale, while crucial aspects like performance, quality, safety, and longevity remain stagnant. The user, he noted, is what truly matters.
Applying this to the automotive sector, Xiang stated, “The world needs battery companies that understand intelligent electric vehicles, and intelligent electric vehicle companies that understand batteries.” Li Auto aims to be among the latter, working collaboratively with battery suppliers who possess deep expertise in their domain. Together, they aspire to tackle long-standing challenges and push the envelope of what’s possible.
This strategic focus on battery technology is set to be further highlighted at Li Auto’s upcoming Power Day event. The company has scheduled its electric technology release conference for October 20th at 7:30 PM, where it is expected to unveil its latest technological advancements. This event underscores Li Auto’s commitment to innovation and its ambition to play a significant role in shaping the future of electric mobility through dedicated research and development in core components like batteries.
The push for vertical integration in key technological areas, such as battery development, is a growing trend among major automotive players. By investing in in-house research and development for critical components, companies aim to gain greater control over supply chains, enhance product performance, and accelerate innovation cycles. Li Xiang’s stance reflects this broader industry shift, positioning Li Auto as a forward-thinking entity dedicated to long-term technological leadership and delivering superior value to its customers.
The company’s emphasis on understanding batteries from the vehicle manufacturer’s perspective is also crucial for optimizing the integration of battery systems within the overall vehicle architecture. This holistic approach can lead to improvements in energy efficiency, charging speeds, battery management systems, and overall vehicle safety, all of which are key concerns for electric vehicle consumers. Li Auto’s proactive stance suggests a commitment to addressing these consumer needs directly through technological prowess.
