China’s largest vehicle manufacturer, SAIC Motor, signed an agreement last week to strengthen its collaboration with Contemporary Amperex Technology Company Limited (CATL) in the development of electric vehicle (EV) batteries. The two companies plan to strengthen their strategic collaboration on multiple fronts, including development of new technologies, battery aftermarket services and overseas expansion.

The state-owned automaker has agreed to make CATL, the world’s largest EV battery manufacturer, its preferred battery supplier and will prioritise the use of CATL’s Qilin and Shenxing batteries in its EVs. The two companies will work together to tailor these batteries to closely meet SAIC Motor’s requirements.

In the area of aftermarket services, SAIC Motor and CATL will look to co-develop new battery-swapping innovations and collaborate in the expansion of charging networks, in battery recycling and repurposing, and even in the used car business.

In the battery swapping business, the two companies will work together to make SAIC EVs compatible with CATL’s swappable battery systems, while CATL and its affiliates will provide battery leasing and swapping services.

CATL will also leverage its global resources to support SAIC Motor's overseas expansion, including by establishing overseas after-sales service networks.

Last month CATL introduced two standardized battery sizes for its Choco-Swap battery swapping stations, in partnership with close to 100 partners, as it stepped up the roll out its battery swapping network across China.