Chongqing—CATL recently began operating two battery pack production lines inside the Seres Super Factory in Chongqing’s Liangjiang New Area—marking its first “factory-in-factory” supply model and debut manufacturing presence in the city. This setup enables localized battery production and faster delivery for Seres vehicles.

CATL officially launched two battery pack production lines on June 30 at the Seres Super Factory. (Photo/CATL)

The "factory-in-factory" model is a highlight of the partnership, where key component suppliers are embedded directly within the vehicle manufacturing plant. According to Xinhua, the factory integrates multiple supply chain enterprises onsite, establishing a localized system of synchronized production and real-time responsiveness.

Under this model, components produced by suppliers can be delivered directly to the final assembly workshops via overhead corridors, reducing logistics time and costs. In the event of technical issues, onsite personnel from all parties can collaborate and resolve them in real time, greatly enhancing overall production efficiency.

According to information provided by Seres, ChuanYu Shidai, a wholly owned subsidiary of CATL established in Chongqing on March 24, operates the newly launched battery pack production lines. The construction of these lines was part of the joint planning during the factory's early stages. CATL officially began construction in March, with a total planned investment of 230 million yuan (USD 32.11 million) and an expected annual output value of 7 billion yuan.

At the launch ceremony, Zhang Xinghai, Chairman of Seres Group, described the localized supply chain jointly built with CATL as a milestone for Seres. CATL Chairman and CEO Robin Zeng echoed the sentiment, noting that the new battery pack lines are among CATL’s most advanced smart and digitalized facilities. Zeng emphasized that this launch marks a new chapter in the collaboration with Seres and a strategic step in CATL’s localization efforts in Chongqing.

As a global leader in new energy technologies, CATL’s decision to establish a base in Chongqing is closely tied to the city’s strategic advantages. Thanks to its well-developed water and land transportation networks, Chongqing is ideally positioned for both domestic and international logistics, stated Zeng. It also offers access to highly skilled talent and outstanding vehicle manufacturers like Seres.

Before entering Chongqing, CATL had already expanded into neighboring Sichuan province. In 2019, the company established its wholly owned subsidiary, Sichuan Shidai, in Yibin, focusing on battery cell production. With the new Chongqing facility now in operation, CATL has established a complementary industrial chain in Southwest China—producing battery cells in Sichuan and assembling battery packs in Chongqing.

CATL Chairman and CEO Robin Zeng and Seres Group Chairman Zhang Xinghai jointly toured the battery pack production lines on June 30 at the Seres Super Factory. (Photo/Seres)

CATL continues to expand localized production capacity to meet global customer demand. In addition to Chongqing, the company is advancing projects in Guiyang, Xiamen, and other locations across China. Globally, CATL is ramping up capacity at its German plant while also pushing forward with projects in Hungary, Spain, and Indonesia.

CATL and Seres have maintained a close and expanding partnership, including cooperation in low-carbon energy initiatives. The two companies signed a five-year strategic agreement in 2022 under which all Seres’ Aito models would be equipped with CATL’s power batteries. To date, over 700,000 AITO vehicles have been sold, all powered by CATL battery systems. In April, CATL completed the grid connection of a 50 MWh distributed photovoltaic project at the factory, providing the facility with a sustainable green energy supply.