"Xpeng to replace current battery supplier for Mona series with a new supplier apart from BYD, as claimed by a recent report"
In a move aimed at diversifying its battery supply, Xpeng, the Chinese electric vehicle (EV) manufacturer, has announced that it will be introducing a new battery supplier for its Mona lineup. The news comes as the company looks to reduce its reliance on sole supplier BYD.
According to reports, the new battery supplier will be Eve Energy, a company that employs traditional prismatic cells in its battery solutions, offering greater layout flexibility compared to BYD's short blade batteries.
The Mona M03, the current model in the Mona series, has been a significant contributor to Xpeng's business growth. From January to August, the M03 delivered 117,443 units, accounting for 43.24 percent of Xpeng's total deliveries during the same period. The M03 also utilizes blade batteries based on lithium iron phosphate (LFP) chemistry supplied by BYD's battery unit FinDreams Battery.
However, with the introduction of Eve Energy, the base models of subsequent Mona lineup vehicles will be equipped with batteries supplied by Eve Energy, while the long-range version of the Mona series will continue to use BYD batteries.
Xpeng's primary battery suppliers are CALB, Eve Energy, and BYD. In August, CALB ranked third with 5.03 GWh of battery installations, holding an 8.05 percent market share. Meanwhile, BYD ranked second in China with a power battery installation volume of 13.02 GWh, capturing a 20.85 percent market share. Eve Energy was fifth with 2.74 GWh of installations and a 4.39 percent share.
The new battery supplier for the Mona lineup will also supply batteries for the extended-range version of the Xpeng G7.
Xpeng's decision to bring in a new battery supplier follows its strategy of continuous innovation and growth. The company is also developing a second model in its Mona lineup, an SUV with a front face similar to the M03.
The M03 was launched in China on August 27, 2024, with a starting price of RMB 119,800 ($16,820). In August, the M03 delivered 15,334 units, marking its 12th consecutive month surpassing the 10,000-unit mark.
The details about the business development of Xpeng are reported by CnEVPost. The source for the information about the new battery supplier for the Mona lineup is not specified in the text.
Xpeng's shares (NYSE: XPEV) have been trading on the New York Stock Exchange since 2020.
