During the earnings call, Li Xiang, Chairman of Li Auto, disclosed that beginning in the latter half of this year, all Li Auto models will be outfitted with the company’s proprietary batteries. He emphasized that, from a long-term perspective, batteries and chips represent critical technological barriers and competitive advantages within the embodied AI sector. Li Auto’s core competitiveness, he explained, lies in its three-electric technologies (battery, electric motor, and electronic control) and robust product capabilities.

President Ma Donghui added that, despite the cost pressures stemming from this year’s fluctuations in upstream raw material and component prices, Li Auto plans to mitigate these challenges through a dual strategy. In the short term, the company will leverage volume lock-ins and refined operational efficiencies. Over the medium to long term, Li Auto aims to achieve structural cost reductions by relying on full-stack self-developed technologies and an autonomous supply chain system, thereby stabilizing gross margins to fuel sustainable growth.