Emerging
Jun 16, 20261
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Huawei's Harmony Intelligence Expands Battery Supply Chain, Guoxuan High-Tech to Power Wenjie Models
Huawei's Harmony Intelligence is diversifying its battery supply chain by adding Guoxuan High-Tech and other secondary suppliers to supplement CATL, achieving cost reductions of approximately 10% to support aggressive sales targets and increased penetration of the mid-to-low-end vehicle market in 2026.




Quick Facts
Who
Huawei's Harmony Intelligence
What
Harmony Intelligence introduces multiple secondary battery suppliers
When
June 2026
Where
China
- Harmony Intelligence introduces multiple secondary battery suppliers
- Guoxuan High-Tech 81kWh lithium iron phosphate battery designated for Wenjie M6
- CATL maintains exclusive supply contracts but faces reduced market share
- Battery cost reduction of approximately 10% achieved with secondary suppliers
- New Wenjie M6 variants launched at lower price points
Huawei's Harmony Intelligence (鸿蒙智行) is comprehensively diversifying its electric vehicle battery supply chain, moving beyond its long-standing exclusive partnership with Contemporary Amperex Technology Co. Limited (CATL). According to industry sources, secondary battery suppliers including Guoxuan High-Tech and China Creative Battery are set to supply batteries to multiple Harmony Intelligence brands, with Guoxuan High-Tech's 81kWh lithium iron phosphate battery pack already designated for the Wenjie M6 model.
This strategic shift reflects the automotive industry's mounting cost pressures. Storage chip costs have surged to nearly 100 yuan per unit, while lithium carbonate prices have escalated from 80,000 yuan per ton last year to 180,000 yuan per ton currently. Seres Chairman Zhang Xinghai publicly stated that production costs for Wenjie vehicles have increased by 150,000 to 200,000 yuan. By introducing secondary suppliers, Harmony Intelligence can achieve approximately 10% cost reductions compared to CATL pricing—potentially saving around 2,000 yuan per 81kWh battery pack. Secondary suppliers like Guoxuan High-Tech and Evanda have demonstrated greater flexibility, assuming costs such as battery certification to secure positions in Harmony Intelligence's supply chain.
The diversification strategy also addresses Harmony Intelligence's aggressive expansion targets. The company aims to deliver 1 to 1.3 million vehicles in 2026 while launching over 10 new models across five brands covering the 150,000 to 1.5 million yuan price range. However, current performance lags behind competitors; May 2026 sales growth reached only 3.8%, and cumulative deliveries through May remained below 200,000 units, with Wenjie brand contributing over 130,000. To compete in the mass-market segment against rivals like Xiaopeng and Xiaomi, Harmony Intelligence must improve pricing competitiveness through supply chain optimization. The Wenjie M6, after introducing Guoxuan High-Tech batteries, now offers entry-level variants priced from 22.98 million yuan, undercutting Xiaomi's YU7 and positioning Harmony Intelligence more competitively in the mainstream market segment.
Why This Matters
This strategic diversification signals intensifying cost pressures across China's EV supply chain and reveals how leading automotive platforms are optimizing procurement to compete in mass-market segments. For investors and supply chain observers, the shift from exclusive CATL partnerships to multi-supplier strategies indicates both margin compression and emerging opportunities for secondary battery manufacturers. For consumers, supply chain competition directly translates to more competitive pricing—the Wenjie M6's new entry-level variants at 229,800 yuan demonstrate how procurement optimization enables price leadership in the 150,000–1.5 million yuan mainstream segment.
Timeline & Sources
Jun 16, 2026
Wire36Kr reports Harmony Intelligence's comprehensive battery supply chain diversification with Guoxuan High-Tech and secondary suppliers
Entities
- Xiaopeng Motors
- Wenjie M6
- Huawei Executive Director Yu Chengdong
- Evanda
- Huawei's Harmony Intelligence
- Seres Chairman Zhang Xinghai
- Wenjie M9
- Guoxuan High-Tech 81kWh battery pack
- Guoxuan High-Tech
- Xiaomi
- Chongqing
- Harmony Intelligence whale battery
- Contemporary Amperex Technology Co. Limited (CATL)
- China Creative Battery
- Seres
- China