Recently, Li Auto has ramped up its investment in Sunwoda Electric Vehicle Battery. Meanwhile, Xiaomi's Pengcheng series has incorporated battery cells supplied by CALB and Sunwoda. Numerous automakers are reshuffling their battery supply systems, leading to a flurry of adjustments in the domestic power battery supply landscape. The primary reason for automakers to adjust their supply chains lies in the long-standing imbalance in profit distribution within the industrial chain. According to industry insiders, power batteries constitute 30% to 40% of a vehicle's total cost, making them the single most expensive component in new energy vehicles. Public data reveals that the cumulative profits of eight mainstream power battery companies in the first half of the year amounted to approximately RMB 50.8 billion, whereas the cumulative profits of 23 mainstream listed automakers during the same period were around RMB 25.1 billion. Excluding the leading companies, the average profits of the remaining battery firms are not substantial. Peng Jianhe, the head of Ruipu Saike, highlighted that the sustainability of this round of multi-supplier expansion hinges on three key factors: the ability of second-tier manufacturers to establish a positive cycle in product competitiveness, the pace at which automakers develop their in-house batteries, and the industrialization progress of new technologies such as solid-state batteries and sodium-ion batteries. He believes that second-tier manufacturers are still in the 'qualifying round' phase and have yet to reach the 'final round.'