Factory-in-Factory Setup Debut by CATL for Manufacturing EV Batteries for Aito Vehicles
In a significant move to accelerate the production and delivery of electric vehicles (EVs) in China, Contemporary Amperex Technology (CATL) and Chongqing-based EV brand Aito, a premium offering developed by Seres, have established a "factory-in-factory" setup within Seres' super factory in Chongqing Liangjiang New Area.
This innovative setup integrates CATL's battery production lines directly within the Seres Super Factory, enabling components to be delivered quickly to the final assembly workshops via overhead corridors. This reduces logistics time and costs, enhancing overall production efficiency. The setup also allows for real-time collaboration and issue resolution between CATL and Seres, further improving production efficiency.
The factory-in-factory model creates a localized system of synchronized production, integrating multiple supply chain enterprises onsite. This ensures that components are produced and delivered in real-time, aligning with the vehicle manufacturing schedule. Localization of battery production facilitates faster delivery of batteries to the assembly line, which can accelerate the production cycle of electric vehicles.
The partnership involves a significant investment of 230 million yuan (approximately USD 32.11 million) by CATL, with an expected annual output value of 7 billion yuan. This investment and output contribute to the economic development of the region and support the growth of the electric vehicle industry in China.
CATL, the world's largest EV battery supplier since 2017 according to SNE Research, has been exclusively supplying batteries to Aito since its launch. The company's Chairman, Zeng Yuqun, stated that the new facility represents CATL's most advanced intelligent and digitalized production site to date.
Since its launch, cumulative sales of Aito cars have surpassed 700,000 units. The partnership between CATL and Seres Group has expanded beyond battery supply, with the aim to promote low-carbon transformation across the automotive supply chain.
The strategic move has resulted in CATL's market share increasing to 38.3 percent in the first quarter of this year. Furthermore, CATL has built a 50-megawatt-hour distributed photovoltaic project for Seres' super factory, further supporting the low-carbon transformation of the automotive industry.
This partnership is expected to contribute significantly to the low-carbon transformation of the automotive industry, accelerating the manufacturing and delivery of Aito models, and reducing customer wait times. The factory-in-factory setup is a strategic move that optimizes production processes, enhances efficiency, and supports the rapid growth of the electric vehicle market in China.
The factory-in-factory setup, integrating CATL's technology-driven battery production lines with Seres' super factory, aims to streamline finance and business operations by reducing logistics time and costs, and fostering real-time collaboration. This strategic move in the industry is anticipated to boost the production and efficiency of the premium EV brand Aito, while supporting the growth of the finance sector through significant investment and annual output value.
