CATL and Seres will push combined battery capacity for the Aito brand past 20 GWh a year, under a long-term strategic cooperation agreement signed Saturday at Seres headquarters in Chongqing.

The deal accelerates the second phase of the partners' "factory-in-factory" project at the Seres plant, which carries a planned annual capacity of 10 to 12 GWh. CATL (HKEX: 3750) confirmed the figures in a statement, though it disclosed neither the agreement's duration nor a start date for phase-two operations.

Aito has fitted CATL batteries in every model since the brand launched. Cumulative deliveries have surpassed 1.2 million vehicles, CATL said.

What does the factory-in-factory model involve?

The project integrates battery system production with Aito vehicle assembly at the same site. On June 30, 2025, CATL began operating two CTP (cell-to-pack) 2.0 battery pack lines at the Seres plant, supplying Aito vehicles locally.

The site marked two firsts for the battery maker: CATL's first production base in Chongqing and its first deployment of the factory-in-factory model. The companies aim to improve supply chain resilience and competitiveness by concentrating production at the location, CATL said.

Where else does the agreement reach?

Beyond capacity, the partners will cooperate on:

• Supercharging networks
• Battery services covering the full battery lifecycle
• Joint pursuit of overseas markets in Europe, the Middle East and Central Asia

The statement gave no details on which models or implementation plans the overseas cooperation involves.

How does the Huawei deal fit in?

Seres also recently renewed its Aito partnership with Huawei. The two signed a new five-year cooperation agreement in Shenzhen on September 30 to jointly develop the Aito business. Arrangements announced October 1 add a dedicated Aito team and continued brand-specific operations.

For CATL, the world's largest EV battery supplier, the agreement cements its anchor supply relationship with one of China's fastest-scaling EREV/BEV brands. The company's global EV battery installations reached 333.0 GWh in the first eight months of this year, up 25.2% year on year, for a 39.4% market share, according to data released October 2 by South Korean researcher SNE Research.

What to watch next: a start date and ramp schedule for phase two at the Chongqing plant, the first concrete supercharging or battery-service announcements, and any named Aito model tied to the Europe, Middle East or Central Asia push.