Core Viewpoint - The collaboration between CATL and Seres to establish a "factory within a factory" model for battery production represents a disruptive innovation in the supply chain of electric vehicle (EV) batteries, significantly enhancing efficiency and quality control [1][7][34]. Group 1: Reasons for Choosing CATL - Seres has exclusively sourced batteries from CATL since its inception in 2021, achieving a record of zero self-ignition incidents in its vehicles [10][19]. - Many brands opt for multiple battery suppliers to ensure stable supply, but this "mixed supply" model can lead to inconsistencies in battery quality and complicate vehicle quality control [12][14][15]. - The exclusive supply from CATL allows for better quality uniformity, which is increasingly important to consumers who are becoming more knowledgeable about EV components [17][19]. Group 2: Efficiency Gains - The "factory within a factory" model allows for immediate battery production and installation, reducing the time from production to vehicle assembly to under 20 minutes [1][3][30]. - This model enhances the relationship between the vehicle manufacturer and the battery supplier, allowing for real-time adjustments to battery production based on vehicle demand, thus minimizing communication costs and improving supply chain efficiency [30][33]. - The ability to quickly adapt battery supply to production needs is crucial in a competitive market where every minute counts [20][33]. Group 3: Supply Chain Integration - The integration of battery production into the vehicle manufacturing process creates a seamless connection, transforming the traditional buyer-supplier relationship into a collaborative ecosystem [37][38]. - This shift signifies a move towards deeper supply chain integration, where the ability to incorporate core suppliers into the manufacturing process becomes a competitive advantage [35][36]. - The evolution of this model reflects a broader trend in the industry towards becoming an ecosystem integrator, enhancing overall competitiveness in the high-end EV market [41][42].