Leapmotor is following in BYD‘s footsteps by expanding into the automotive components supply business, with its latest move being the provision of battery packs to commercial vehicle manufacturers using cells from industry leader CATL.

According to recent information obtained by 36Kr Auto, Leapmotor has begun supplying self-developed battery packs to the commercial vehicle sector. These battery systems utilise cells from CATL and other battery manufacturers, with Leapmotor handling the pack design and assembly through its subsidiary Lingxiao Energy, which specialises in battery technology development.

The company has already secured orders from more than five new energy commercial vehicle customers and is actively pursuing additional partnerships. Xeazon New Energy Vehicle Co., Ltd. is reportedly among the commercial vehicle manufacturers currently in advanced negotiations with Leapmotor.

Leapmotor CEO Zhu Jiangming announced in July that the company would expand its self-development capabilities beyond the core “three electric” systems (battery, motor, and electronic control) and intelligent features to include all high-value components where in-house development is feasible.

While Leapmotor has already established component supply relationships with passenger car manufacturers – including a joint venture with Stellantis and a development partnership with Hongqi – the commercial vehicle sector offers distinct advantages.

Industry analysts quoted by 36kr Auto note that automakers typically face resistance when attempting to supply critical components to direct competitors in the passenger vehicle market. However, the commercial vehicle sector presents fewer competitive barriers and greater growth potential.

Data from the China Passenger Car Association (CPCA) shows that while new energy penetration in the passenger vehicle market already exceeds 50%, commercial vehicles remain at under 20% electrification. This suggests significant growth opportunities, with commercial vehicle battery installations increasing 126.2% year-on-year in the first half of 2024, reaching 51.4GWh.

Leapmotor delivered 221,700 vehicles in the first half of 2024, a 156% year-on-year increase. In July alone, the company’s deliveries exceeded 50,000 units for the first time.

Editor’s comment

BYD’s hallmark is its vertically integrated supply chain; it built every critical component – batteries, motors, inverters – under one roof, covering R&D, manufacturing, and sales.

From 2019 to 2021, BYD spun off these component divisions into independent subsidiaries collectively known as the “Findreams” group. These companies now compete on equal footing with outside suppliers, serving not only BYD but any automaker.

Now, Leapmotor is following BYD’s footsteps.