Over 20GWh Capacity: The Triple Logic Behind the Capacity Expansion of CATL and SERES' "Factory-in-Factory" Model
On October 10, CATL and SERES Group signed a long-term strategic cooperation agreement in Chongqing, deepening collaboration in three major areas: "factory-in-factory" capacity expansion, ultra-fast charging and energy replenishment ecosystem, and global layout.
The most significant quantifiable indicator is the acceleration of the second phase construction of the "factory-in-factory" at the SERES Super Factory. The planned annual capacity for the second phase is 10GWh-12GWh, and upon completion, the total annual capacity of the first and second phases will exceed 20GWh.
This is not a cooperation starting from scratch. On June 30, 2025, CATL completed the construction of two high-end CTP 2.0 battery pack production lines within the SERES Super Factory, achieving local production and immediate supply of power batteries for the first time through the "factory-in-factory" model, with the first phase's annual capacity reaching 10GWh-12GWh.
A year and four months later, the second phase was launched, indicating that this verified supporting model is being replicated and scaled up.
The Synergy Economics Behind the 20GWh Capacity
The core of the "factory-in-factory" model is to directly embed the battery pack production line into the vehicle manufacturing base, compressing the physical distance of the supply chain.
According to previous reports by CCTV.com, from the moment SERES issues a production order to the completion of CATL's production line adjustment, the entire process takes only 20 minutes. In contrast, under the traditional cross-regional supporting model, transporting batteries from the Fujian base to Chongqing takes at least 1 to 2 days. The inventory logic has been completely rewritten to an "hourly" level.
In addition, the elimination of transportation distance not only saves logistics, transportation, and warehousing costs but also reduces power loss and quality risks. SERES has also publicly introduced that in the past, component transportation took hours or even days. Now, with production next to the assembly line and delivery in minutes, the extreme compression of the logistics link not only reduces carbon emissions and costs but also provides a guarantee for production stability.
The first phase capacity of 10GWh-12GWh can support 130,000 to 260,000 vehicles. According to this conversion standard, after the second phase is completed, the total capacity will exceed 20GWh, corresponding to a vehicle supporting capacity of approximately 260,000 to 520,000 units.
This range highly matches SERES' current sales ramp-up pace. Since the AITO brand was founded in 2022, all its models have been equipped with CATL batteries, and as of now, the cumulative deliveries have exceeded 1.2 million units.
CATL is not the only "factory-in-factory" within the SERES Super Factory. According to disclosures by SERES, its "Industrial Brain" has connected over 300 partners, directly linking the entire chain to more than 50 core suppliers, and the production lines of multiple core supply chain enterprises have been directly integrated into the vehicle factory.
CATL's factory-in-factory is the most heavily weighted link in this entire OEM-supplier synergy system.
Viewed within the context of CATL's entire Sichuan-Chongqing capacity layout, the factory-in-factory represents another supporting logic.
Sichuan CATL in Yibin is the world's largest single power battery production base, with 7 factories built, following a large-scale independent base route; Times Chang'an in Beibei is a joint venture between Changan and CATL, with a planned capacity of 25GWh to support the Changan system; Sichuan-Chongqing CATL is laid out in Guang'an; and the newly acquired Fuling project through Times Geely has a planned capacity of 24GWh to support the Geely system.
These bases each have their own direct customers and are not in competition with each other; instead, they form a multi-point layout supply network with respective focuses in the Sichuan-Chongqing region.
The SERES factory-in-factory is not the largest in terms of single-unit scale among them, but it has the closest physical distance and the fastest response speed, serving as a typical sample of the zero-distance supporting route.
What Does Being the Sole Supplier for 1.2 Million Units Mean?
Where does the figure of 1.2 million units stand in CATL's passenger vehicle customer system?
Looking at the cooperation timeline, in August 2022, CATL and SERES signed a five-year long-term strategic cooperation agreement. AITO models were fully equipped with CATL power batteries, and the Qilin battery was subsequently applied to new AITO series models.
At that time, the AITO brand had just released its first model, the M5. Over four years, from 0 to 1.2 million deliveries, AITO has achieved one of the fastest growth curves among new force brands and has also become one of CATL's fastest-growing top customers in recent years.
However, the significance of 1.2 million units goes beyond the sales figures themselves. It records the progressive process of the cooperation between the two parties from "model supporting" to "capacity co-construction".
In the early stages of cooperation, the relationship between the two parties remained in the traditional supply and demand model—CATL supplied from its own bases, and SERES purchased and installed them.
In June 2025, two CTP 2.0 production lines were built directly into the SERES Super Factory, marking the first qualitative change in the cooperation model: CATL moved the manufacturing process right next to the customer's final assembly workshop. A year and four months later, the second phase capacity expansion agreement was signed, and the total capacity leaped from 10GWh-12GWh to over 20GWh, indicating that this deep supporting model has been formally solidified into a long-term arrangement after being verified.
For CATL, the investment in the second phase factory-in-factory uses the production line to lock in the battery supply for AITO models in the coming years, upgrading the cooperation from single orders to long-term binding at the capacity level.
For SERES, keeping the battery production line within the factory exchanges for supply chain resilience, cost advantages, and response speed. Against the backdrop of the ongoing price war in the NEV (New Energy Vehicle) market, this synergy efficiency itself is a competitive advantage.
Ultra-Fast Charging Ecosystem: The Next Piece of the Synergy Puzzle
Among the three major cooperation areas, the ultra-fast charging and energy replenishment ecosystem has the least amount of information disclosed but the largest room for imagination.
Public information shows that the two parties will "carry out cooperation around the ultra-fast charging network and battery services to build a service system covering the entire life cycle."
The industrial background corresponding to this statement is that since the release of the "integrated charging and swapping" energy replenishment network in April 2026, CATL is accelerating its transformation from a battery manufacturer to an energy ecosystem operator.
According to the plan, CATL plans to build a cumulative total of 4,000 integrated charging and swapping stations by the end of 2026, covering nearly 190 cities and the "12 vertical and 11 horizontal" highway network. In the first batch of partner lists, SERES is listed alongside Changan, Chery, GAC, SAIC-GM-Wuling, and BAIC.
Relevant statistical data shows that as of the end of September 2026, the cumulative number of EVOGO battery swapping stations nationwide has reached 2,520, covering 31 provinces and 200 cities. In terms of supporting battery products, the EVOGO Block 26 battery is equipped with an 800V high-voltage architecture. The first batch launches a 75 kWh version, fully adapting to B- to C-class 800V models.
Meanwhile, AITO's high-end models are in the iteration cycle of the 800V high-voltage platform. The CATL battery equipped in the AITO M9 has an energy density of up to 166Wh/kg, and the newly released 9-series SUV is equipped with a 71.24kWh Freevoy super extended-range and plug-in hybrid battery, achieving a maximum CLTC pure electric range of over 400 kilometers.
However, there is a practical complexity in the synergy of the ultra-fast charging ecosystem: Huawei itself has been laying out a fully liquid-cooled ultra-fast charging network. As the core brand of Huawei's Smart Selection vehicle model, AITO's ultra-fast charging experience has long been bound to the Huawei system.
How CATL's integrated charging and swapping stations and Huawei's ultra-fast charging stations divide labor in terms of physical site selection, brand identity, and user entry points is a question that must be answered during the implementation of the cooperation between the two parties.
Whether the expressions of "battery services" and "entire life cycle" in this agreement include aftermarket businesses such as residual value management of used batteries, cascade utilization, and energy storage recycling remains to be disclosed in the future.
Globalization is the Next Test
The last of the three major cooperation areas—accelerating the global layout—currently has the fewest details disclosed, but it may be the most far-reaching link.
SERES has publicly stated that the AITO brand plans to enter the European market in 2027. Currently, the WVTA EU whole vehicle type approval work has been fully launched, and it will bring AITO 6, AITO 7, AITO 8, and AITO 9 to the 2026 Paris Motor Show.
The long-term goal set by SERES is for overseas sales to account for one-third of total sales. Previously, SERES products have been exported to more than 70 countries and regions including Europe, the Americas, Africa, and the Middle East, with cumulative exports of over 550,000 complete vehicles, but the AITO brand has not yet gone overseas independently.
The question follows: where will the batteries for the European version of AITO come from?
If exported from China, the EU battery regulations' requirements for carbon footprint disclosure, battery passports, and raw material traceability will increase compliance costs; if relying on CATL's overseas local supporting, its Debrecen factory in Hungary currently mainly serves BMW and Stellantis. Whether it can cut out a production line for SERES has not yet been disclosed in public information.
The mention of "accelerating the global layout" in the agreement by both parties highly likely covers the overseas synergy arrangements of the battery supply chain.
From the 10GWh first phase to the 20GWh second phase, from battery procurement to factory-in-factory co-construction, from domestic supporting to the ultra-fast charging network and then to overseas layout, the cooperation between CATL and SERES is progressing step by step along the path of "product—capacity—ecosystem—global".
In this process, whether the factory-in-factory model can be replicated in other automakers, how the ultra-fast charging ecosystem can coexist with the Huawei system, and how the European battery supporting will be implemented will be the three observation points worth continuously tracking next.