Battery giant Contemporary Amperex Technology Co Ltd unveiled its Qilin battery with the highest utilization efficiency in the world on Thursday, and a source told China Daily the pure electric model of Li Auto will be equipped with the battery.

A source close to the automaker disclosed CATL already agreed an initial deal with Li Auto to utilize the Qilin battery in its electric model next year. CATL also said on Thursday the battery will be in mass production by 2023.

CATL confirmed to China Daily that Li Auto will use Qilin batteries. Li Xiang, CEO of Li Auto, also shared a post concerning Qilin batteries on social media platform Weibo on Thursday, leaving the comment "See you next year!"

With the same battery pack size, Qilin battery is able to deliver 13 percent more power than US electric vehicle giant Tesla's 4680-format cells. With a record-breaking volume utilization efficiency of 72 percent, the new battery is able to deliver a driving range of over 1,000 kilometers.