Xiaomi's First EV Will Run On CALB And CATL Batteries

According to insider sources cited by CNEV, a prominent media outlet, Xiaomi's electric vehicle (EV) division has restructured its power battery suppliers, selecting CALB as the tier-1 supplier and CATL as the tier-2 supplier in a strategic move.

This decision represents a significant departure from the previous arrangement, under which CATL held the tier-1 position. Following a patent dispute between the two battery manufacturers, Chinese intellectual property authorities invalidated two of CATL's patents, effectively allowing CALB to reenter the competition.
As Xiaomi's vehicles hit the market and gain traction, the battery supply distribution will remain flexible, with adjustments based on sales performance.

The company's long-term vision includes potentially collaborating with other battery manufacturers, such as BYD, to improve cost-efficiency even further. Nonetheless, Xiaomi's automotive division is not currently on BYD's list of power battery recipients.
Xiaomi's approach to its EV business model distinguishes it from traditional automakers. Instead of relying solely on hardware sales, the company intends to focus on software-based revenue streams.
An insider from Xiaomi emphasised this strategy, claiming that the EV business would keep component margins of around 1%. With profit in mind, the company intends to generate significant revenue through software offerings and eco-services, leveraging its technological prowess even further.
Xiaomi's EV venture began on March 30, 2021, when the company announced its entry into the automotive industry. The project's first phase received a significant initial investment of RMB 10 billion yuan, with a long-term commitment of $10 billion over the next decade.
Xiaomi's first EV model will feature LiDAR technology and be positioned as a premium sedan as reported by LatePost.