On June 30, 2025, CATL (Contemporary Amperex Technology Co. Limited) and Seres launched the world's first "Factory-in-a-Factory" battery production project in Chongqing, marking a new phase in the deep integration of the automotive supply chain. This initiative embeds CATL's CTP 2.0 high-end battery production lines directly within Seres’ super factory, creating a zero-distance synergy between battery and vehicle manufacturing and pioneering a new paradigm for industrial collaboration.
Localized Production & Carbon Management: A Game-Changer for Chinese Automakers
Amid global carbon barriers and accelerating industry transformation, this model offers a breakthrough for Chinese automakers. Through localized production, photovoltaic energy cycles, and full lifecycle carbon management, companies can seize a compliance advantage under international regulations such as the EU’s “New Battery Law.” This innovative approach is driving the industry towards a more integrated and eco-conscious transformation.
Space Reconfiguration: Breakthroughs in Efficiency and Cost Reduction
In traditional setups, battery packs go through independent production, long-distance transportation, and multiple stages of warehousing. However, the "Factory-in-a-Factory" model integrates physical spaces, compressing the response time from the industry average of 48 hours to just 20 minutes. Component turnover is streamlined to achieve a "daily clearance" process. According to Seres, logistics costs have been reduced by over 30 million yuan annually, while carbon emissions have been cut by about 1,200 tons, equivalent to the reduction in emissions from 7,500 gasoline cars (based on 8L per 100km fuel consumption).
Efficiency Gains through Seamless Manufacturing Collaboration
The collaboration is also achieving significant efficiency gains. The joint venture includes a 50MWh distributed photovoltaic power station, which generates 6 million kWh annually, covering 80% of the production line's electricity needs. This forms a "production-to-carbon-reduction" loop. Seres’ production manager revealed that this model has reduced vehicle production cycles by 10%-15%, with the M9 model’s delivery time reduced from the industry average of 6 weeks to 5 weeks.
Technological Trust: Empowering Quality Upgrades through Extreme Manufacturing
The foundation of this collaboration is built on CATL’s PPB-level (billionths of a percent) cell defect rate technology. Official data shows that its production line boasts a 99.8% yield rate and 100% automation, with a battery pack rolling off the line every 45 seconds. The M9 battery pack, used in Seres’ vehicles, features five layers of cell safety packaging and ten layers of thermal runaway protection, surpassing national safety standards by three times. Joint quality control labs enable full traceability throughout the production process.
Extending Collaboration to R&D: A Full-Cycle Synergy
Technological cooperation extends to the R&D side as well. CATL engineers are stationed at Seres' design center, working together to develop integrated battery-chassis solutions that have boosted the energy density of new vehicle battery packs by 15% and improved fast-charging efficiency by 25%. This "R&D-Manufacturing-Quality Control" triad is transforming batteries from a mere component to a core driver of vehicle performance.
Industry Transformation: Deep Integration Becomes the Survival Rule
The "marriage-like cooperation" between leading enterprises is reshaping the industry landscape. According to data from Gaogong Lithium Battery, the construction of such production lines requires support from annual orders of 300,000 vehicles, raising the industry entry barriers significantly. This has created technical barriers for 80% of smaller battery companies, forcing them out of the market. CATL’s integration into Seres’ manufacturing system has increased the switching costs for Seres’ entire range of 700,000 vehicles using CATL batteries.
Policy and Capital Accelerating the Ecological Fusion
Policy and capital are also accelerating this trend towards ecosystem fusion. Shenzhen has introduced 12 financial measures to support industry-wide collaboration, including setting up a 5 billion yuan investment fund for the new energy sector and launching specialized supply chain financing tools. The Chengdu-Chongqing Economic Circle has built a collaborative platform covering 62 enterprises, achieving cross-province material delivery in under 4 hours. Other examples, such as the joint venture between GAC and CATL to build a 5 billion yuan battery plant, and BYD opening its blade battery production lines to Mercedes-Benz, are proof that the industry consensus is clear: "Without deep integration, companies will be marginalized."
The Strategic Game of Global Transformation
China’s automotive industry is now leveraging "zero-distance intelligent manufacturing" as a sword to explore a new Eastern path for the global automotive transformation. This supply chain revolution is not just about efficiency and cost savings but is also a strategic game concerning technological sovereignty, ecosystem building, and global regulatory influence.
