A consumer dispute in China has highlighted a shifting power dynamic in the electric vehicle industry, where battery suppliers are increasingly becoming consumer-facing brands. In September, a buyer in Henan province paid a 5,000 yuan deposit to reserve a new Li Auto MEGA priced at 509,800 yuan (about $71,800). When she learned the vehicle would no longer be equipped with CATL batteries, she demanded a refund of her deposit, according to a report from the Chinese outlet Huxiu.
Li Auto had announced that vehicles locked in after 3 p.m. on September 7 would switch from CATL's 5C ternary lithium batteries to Li Auto's own 5C ternary lithium cells. The automaker, which handles the cell, pack, and BMS development, has the cells manufactured by partner companies. The consumer refused to accept the change, and after negotiations failed, local media intervened.
Battery brand becomes a purchase factor
Li Auto's Zhengzhou staff said the battery brand is not a core selling point and that they were unaware customers cared so much. But the dispute reflects a broader trend: a NielsenIQ report, cited by Huxiu, found that battery choice accounts for 13.8% of Chinese consumers' purchase decisions, second only to overall vehicle safety. Moreover, 37.1% of Chinese respondents said they would abandon a model if it did not use CATL batteries.
This marks a significant shift. Traditionally, automakers like Mercedes-Benz or Toyota were the sole brand responsible for a vehicle's quality. But in the EV era, components like batteries, ADAS chips, and driver-assistance systems are being highlighted by automakers themselves in launches and marketing. CATL, in particular, has become a proxy for quality and safety, as consumers cannot easily verify battery performance over time.
CATL has actively cultivated this image, even launching a feature in May that lets consumers check whether a specific model uses its batteries. This mirrors Intel's 'Intel Inside' campaign, which turned a hidden component into a recognizable brand. CATL is effectively becoming an 'ingredient brand,' and its name now participates in pricing.
Automakers seek control
Li Auto is not alone in feeling the pressure. Automakers are increasingly competing with suppliers over who defines the product. An industry insider told Huxiu that automakers and battery companies are privately vying for control, with automakers wanting to reclaim product definition while suppliers are reluctant to give it up.
Historically, battery makers developed cells first, and automakers chose from available options. Now, stronger automakers are reversing this logic, defining the vehicle first and then asking suppliers to build a battery to match. This shift affects everything from range and charging speed to weight, safety, and cost.
Li Auto has been developing its own battery technology since 2020 and is expanding its self-developed systems to more models. The company has stated that regardless of whether the battery comes from CATL, Sunwoda, or its own system, Li Auto will lead the underlying product definition, technical standards, and quality control, aiming for consumers to trust 'Li Auto standards.'
