Leapmotor (HKG: 9863) has begun supplying power battery packs to customers as a supplier amid the rapid growth of its own new energy vehicle (NEV) sales, partially emulating the model of BYD (HKG: 1211, OTCMKTS: BYDDY).
Leapmotor's in-house developed battery packs have also begun external supply, with battery cells sourced from CATL (SHE: 300750) and other battery manufacturers, according to a report by local media outlet 36kr today.
This business is handled by Leapmotor's subsidiary Lingxiao Energy, which focuses on battery technology R&D, according to the report.
The Leapmotor subsidiary has received orders from more than five new energy commercial vehicle customers and is continuing to expand its customer base, with Seazon Motor being one of the commercial vehicle manufacturers currently in advanced negotiations, according to the report.
Receiving battery pack orders from multiple commercial vehicle manufacturers signifies that Leapmotor's components business has entered a new phase, the report noted.
For CATL, leveraging Leapmotor as an intermediary could help it gain a larger market share in the commercial vehicle sector, the report said.
Leapmotor is currently one of the fastest-growing Chinese NEV makers, delivering 50,129 vehicles in July -- its first monthly delivery exceeding 50,000 units and a record high for the third consecutive month.
So far this year, Leapmotor has delivered 271,793 vehicles, up 149.84 percent year-on-year, according to data compiled by CnEVPost.
Over the past few years, the company has conducted independent research and development in core components.
Leapmotor's goal is not only to reduce costs, but also to replicate BYD's successful path to some extent -- selling vehicles while also supplying components to other manufacturers, according to the report by 36kr.
Last year, Leapmotor established a joint venture with Stellantis called Leapmotor International, which licensed electronic architecture technology to Stellantis and supply it with components such as headlights and electric drives, according to the report.
In March this year, Leapmotor reached a cooperation agreement with FAW Group's Hongqi brand. The two sides plan to jointly develop a model for overseas markets, which is expected to go into production in the second half of next year, according to the report.
On October 26, 2023, Leapmotor announced that Stellantis would invest 1.5 billion euros to acquire about 20 percent of its shares, becoming the EV maker's largest external shareholder.
On May 14, 2024, Leapmotor announced the official establishment of Leapmotor International, a joint venture in which Stellantis holds a 51 percent stake and Leapmotor holds the remaining 49 percent.
On March 3 this year, Leapmotor and FAW signed a strategic cooperation memorandum of understanding to jointly develop passenger NEVs and cooperate on components, according to a statement at the time.
Supplying in-house developed battery packs to commercial vehicle manufacturers can be seen as a turning point for Leapmotor's component supply business, the report by 36kr said.
