Xiaomi Invests $236M in Sunwoda Power Battery, Joins Li Auto as Third-Largest Shareholder

Shenzhen battery maker Sunwoda (300207.SZ) announced Wednesday that its power battery subsidiary Sunwoda Power has completed a new capital increase, with Xiaomi investing 1.7 billion RMB (approx. $236 million) through its wholly-owned subsidiary Hanxing Venture Investment.

Following the transaction, Xiaomi holds a 5.34% stake in Sunwoda Power, becoming its third-largest shareholder. Li Auto, which invested earlier this year, holds 8.32%. Sunwoda's parent company's stake drops to 22.78%, and Sunwoda will no longer consolidate Sunwoda Power into its financial statements starting in the fourth quarter.

The deal marks a significant structural shift: Sunwoda Power transitions from a controlled subsidiary to an equity-method investment. Sunwoda estimates the change will boost its 2026 net profit by 3.2 billion to 4.5 billion RMB (approx. $444 million to $625 million), though the final figure depends on independent audit results.

Unlike a conventional financial investment, Xiaomi's move is rooted in an existing industrial partnership. The Xiaomi Pencheng N70 Pro variant is already equipped with a 52 kWh lithium iron phosphate battery — the "Longjia" cell pack supplied by Sunwoda Power.

For Xiaomi Auto, the equity stake provides a deeper channel to lock in battery capacity, participate in technology iterations, and align on cell specifications, fast-charging solutions, and safety standards. The investment reduces exposure to supply-chain disruptions at a time when competition for battery supply intensifies across the EV sector.

For Sunwoda Power, the arrival of two major automaker-shareholders brings strategic capital and real-world application scenarios. Joint development on vehicle-integrated battery packs, working-condition calibration, and model-specific matching is expected to tighten the feedback loop between battery design and end-user requirements.

The announcement follows a September 2026 strategic cooperation agreement between Xiaomi Auto and Sunwoda Power, which outlined deep collaboration across R&D, manufacturing, and quality systems — an approach designed to let vehicle-side requirements enter battery development earlier in the process.