The power battery sector displayed significant divergence in Tuesday morning trading, with Sunwoda Electronic Co.,Ltd. (300207.SZ) surging to 20.05 yuan, up 13.02%, after touching an intraday high of 20.88 yuan with gains approaching 18%. Trading volume for the morning session reached 2.61 billion yuan.

Meanwhile, Contemporary Amperex Technology Co., Limited (300750.SZ) continued its downward trajectory, falling 3.81% to 304.31 yuan by midday, with an intraday low of 299 yuan representing a drop of more than 5%. This follows Monday's sharp 6.16% decline that closed at 316.36 yuan, marking a one-year closing low, bringing the two-day cumulative loss to nearly 10% based on Thursday's closing price.

The contrasting performance between the two battery makers has refocused market attention on shifting dynamics within the power battery supply chain.

Earlier this month, Li Auto (02015.HK) announced a 2.65 billion yuan investment to increase its stake in Sunwoda's power battery subsidiary. Upon completion, Li Auto-related entities will hold 11.17% of Sunwoda Power, becoming its second-largest shareholder. While Li Auto has maintained a long-term deep partnership with CATL, the electric vehicle maker has been expanding its self-developed battery efforts and strengthening collaboration with Sunwoda this year.

Additionally, Xiaomi has introduced CATL's rivals including CALB and Sunwoda for its next-generation "Longjia Battery" platform. A growing number of automakers that previously relied heavily on CATL are now diversifying their supplier base with second and third sources.

Sunwoda's own power battery business continues to expand rapidly, with electric vehicle battery revenue reaching 14.13 billion yuan in the first half of 2026, representing year-on-year growth of 85.87%, while shipments climbed 76.37% to 28.36 GWh.

CATL's recent share price weakness reflects mounting concerns over production schedules, earnings projections, and the broader trend of supply chain diversification among automakers. Market rumors circulated on Tuesday regarding potential downward revisions to CATL's production plans and profit forecasts. Just three months ago, chairman Robin Zeng publicly stated that CATL would not engage in price wars, noting that some competitors priced their products 10% to 20% lower. As automakers including Li Auto and Xiaomi increasingly turn to alternative suppliers, competition over customers, pricing, and supply chain leverage in the power battery industry continues to intensify.