Li Auto and Nio face mounting cost pressures driven by a severe shortage of automotive-grade memory chips.
Contract prices for these components surged by 180% over the last 90 days. The supply satisfaction rate for automotive memory has plummeted below 50%. Manufacturers currently pay significant premiums to secure inventory and maintain production schedules.
Memory chip price volatility has overtaken battery costs as the most significant variable expense for certain automakers looking toward 2026. EV makers must now compete directly with AI data center providers for limited global wafer capacity. This supply chain disruption threatens the long-term profitability and margin stability of Li Auto and its industry peers.