Shares of Contemporary Amperex Technology Co., Limited (CATL) plunged on both the A-share and H-share markets on September 15, driven by market rumors of accelerating client diversification away from the battery giant. At the time of writing, its A-shares fell more than 6% to 316.5 yuan, marking a new low since September 2025, while H-shares dropped nearly 6% to a low of HK$517, the weakest level since March 2026.
The selloff was triggered by reports indicating shifts in relationships with key clients. According to disclosures, Li Auto has pivoted some of its models toward Sunwoda and its own in-house battery development. Additionally, Xiaomi's newly launched Pengcheng N70 and N90 models have abandoned the CATL batteries previously used in the SU7 and YU7, opting instead for Xiaomi's Longjia battery system, with cells supplied by CALB and Sunwoda. Both automakers are channeling part of their battery demand away from CATL through partnerships with these alternative suppliers and self-developed or co-developed battery solutions.
Signals of client migration had emerged earlier. Following the launch of the new-generation Li L8 in June 2026, the entire vehicle lineup shifted to Sunwoda batteries, with CATL exiting that model series entirely. Li Auto stated that due to orders for the new Li MEGA exceeding expectations, CATL's 5C ternary lithium battery reserves were nearly depleted. The company will transition to its self-developed 5C ternary lithium batteries, with deliveries expected to commence in November. According to third-party installation data estimates, Li Auto and Xiaomi together account for approximately 13.6% of CATL's domestic installations, representing a notable loss in the premium vehicle segment. As of press time, CATL has not issued an official response regarding the client changes involving Li Auto and Xiaomi.
A separate pressure factor stems from the supply side of the industry. Several leading battery manufacturers confirmed that since the second half of this year, local authorities have essentially stopped accepting new capacity filings for power batteries and energy storage batteries, with new capacity applications largely suspended. Industry statistics show that planned expansion for energy storage battery cells this year has exceeded 800GWh, with total planned capacity approaching 2TWh, far surpassing real global market demand. Analysts suggest this suspension is not a permanent closure of expansion channels, but rather that approval windows are expected to reopen after the industry completes a capacity assessment and establishes a capacity monitoring and early warning mechanism.
In response to the continued pullback, CLSA issued a research report noting that CATL's stock has corrected approximately 15% over the past month, accumulating a decline of roughly 30% from its May peak. The report stated that while no positive catalysts are apparent in the near term, current share prices have already priced in the relevant pessimistic expectations. CLSA maintains a "High Conviction Outperform" rating with a target price of HK$770. The firm also indicated that falling lithium prices should alleviate some cost pressures, while more competitively priced sodium-ion batteries could help the company regain its cost advantage. Furthermore, CLSA found no evidence suggesting CATL is systematically losing market share to other manufacturers. CATL's 2026 interim results showed first-half power battery revenue of 192.125 billion yuan, up 46.02% year-on-year, while energy storage battery revenue reached 53.261 billion yuan, an 87.54% increase, indicating that its fundamentals continue to maintain robust growth momentum.