Shares of CATL (HK: 03750) dropped more than 4% at one point on Monday, extending a losing streak that has now erased over 18% of their value this month. At the time of writing, the stock was down 3.58% to HK$493.20, with turnover reaching HK$815 million.

In a market update on September 4, Sunwoda announced that Li Auto plans to inject 2.65 billion yuan into its power battery unit. Just days later, Li Auto revealed its self-developed battery cells will be integrated across its entire vehicle lineup. Over recent years, several leading new-energy vehicle makers, including Xiaomi and NIO, have been restructuring their power battery procurement strategies. According to third-party installation data estimates, Li Auto and Xiaomi together account for roughly 13.6% of CATL's domestic battery installations.

Citi issued a research note suggesting that worries over 2027 battery demand have triggered recent sell-offs in CATL and lithium carbonate-related equities. The brokerage believes the market has already priced in weak expectations, possibly to an exaggerated degree. Citi remains constructive on CATL's A-shares based on valuation appeal, as well as second-tier players that are gaining market share. The report also attributes CATL's recent declines to concerns over battery oversupply and a deteriorating competitive landscape.