Shanghai (ZXZC)- CATL, one of the world's largest lithium-ion battery manufacturers, has stepped up its cooperation with BAIC Group’s NEV unit BJEV by signed a business strategy agreement on December 6 to co-promote the application of CATL’s products in BJEV’s vehicles.

In accordance with the latest deal, two companies will strengthen the tie-up on complete vehicle projects, jointly boost the R&D of power battery core technologies and consolidate the battery supply system. 

Only two months ago, two parties unveiled the world's first cell-to-pack (CTP) battery pack, and showcased a EU5 all-electric compact sedan that carries the significant technical product.

As we know, each electric vehicle is equipped with one pack. Generally, a cluster of cells compose a module and a cluster of modules make up a pack. However, the complex combination would reduce the space utilization rate and decrease the battery energy density. More importantly, the high cost is another unsolved problem as numerous parts are needed for the complicate assembly, said CATL.

The CTP skips the process of battery modules and make cells directly integrated into packs. Using the eye-catching technology, the volume utilization rate could be increased by 15% to 20%, the production efficiency could be doubled, and the number of parts for a battery pack could be reduced by 40%. Meanwhile, the energy density of a battery pack would jump to over 200Wh/g from the 140-150Wh/kg for average traditional packs, according to the power battery titan. In the near future, BAIC BJEV is to expand the CTP technology across the entire mainstream lineup, including both existing and yet-to-be-launched models.

The collaboration between two parties dated from 2012, when BJEV for the first time put 400 E150EV all-electric cars powered by CATL's battery into scale operation. In February, 2019, the Beijing-based NEV maker signed a five-year deal with CATL for a long-term stable battery supply.

Besides, two companies have jointly built a R&D team to research and develop new types of power battery packs, expecting to help BJEV lower costs and move upscale.

The expanding and deepening cooperation with OEMs embodies CATL's refusal to get into a groove despite its dominance in China's EV battery market. Moreover, the Ningde-based battery supplier celebrated in October the first spade cut of the factory in Germany's Thuringia—its first overseas factory, marking a fortified foray into market outside China (photo source: CATL).