In September 2020, Tesla unveiled its CTC technology, which is designed to complement new battery cells, at Battery Day. A year and a half later, Tesla’s Berlin factory in Germany, which uses CTC technology, officially opened.
This year, the exposure of battery-vehicle integration technology has been increasing. In April, Leapmotor released its CTC battery-chassis integration technology and stated that it would be first mass-produced and applied to the Leapmotor C01. In May, BYD released its CTB battery integration technology and announced that its first e-platform 3.0 model equipped with CTB (Cell To Body) technology, the Seal, would begin pre-sales. In early June, Neta Auto released the Tiangong Battery System, which uses CTP technology (Cell to Pack, module-less battery pack, hereinafter referred to as CTP), and stated that it would officially release CTC technology by the end of next year.
Huatai Securities analysts say that the power battery system technology is currently being upgraded in two directions: the market share of module-less battery packs (CTP) is rapidly increasing and gradually becoming the mainstream technology; CTC mass production is imminent and poised for launch.
What is CTC technology?
The application of power batteries can be divided into battery design, processing, positive electrode materials, negative electrode materials, and final assembly. In terms of assembly, the integration method of battery cells is considered an important link in the production and manufacturing of new energy vehicles.
The traditional integration method is CTM (Cell to Module), which assembles battery cells into modules, and then installs the modules into battery packs, forming a three-level assembly model of "cell-module-battery pack". However, due to the large number of parts in the module battery pack, the space utilization rate is only 40%. In the past few years, the focus of battery system integration has been on improving the size of standardized battery modules.
Huatai Securities analysts say that as the demand for longer driving range increases, 390 and 590 modules, which can improve space utilization, have been proposed. The volume of a single battery module is constantly increasing, which has led to the emergence of module-less battery pack CTP solutions.
CTP (Cell-to-Pack) eliminates the standardized module stage, directly assembling the cells onto the battery pack, improving volume utilization by 15%-20% compared to traditional methods, and also increasing energy density. As electric vehicles increasingly demand convenience and lightweight design, Tianfeng Securities believes that CTP battery-vehicle integration technology is a crucial future development direction for electric vehicle battery pack technology.
CTC refers to the integrated design of battery, chassis and lower body. Simply put, it means that the battery cells are placed directly in the vehicle chassis. Unlike the previous design where the chassis and battery pack were separate, this design improves the energy density of the battery by increasing space utilization. In addition, it can save raw materials and increase the volume of battery cells that can be installed, thereby increasing the volumetric energy density and improving the driving range.
Why are companies rushing to increase their investment in CTC (Content-to-Content) solutions?
Currently, numerous domestic and international automakers and battery manufacturers have set their sights on breakthroughs in battery-vehicle integration technology. From Tesla's initial foray into this field to Leapmotor and BYD following suit, many related companies have accelerated their efforts to develop battery-vehicle integration technology.
At its 2020 Battery Day, Tesla first unveiled its CTC (Cell-to-Chip) battery technology. Last year, at its Berlin factory open day, Tesla showcased the Model Y, featuring CTC battery integrated chassis technology. In March of last year, the Volkswagen Group publicly stated that it would consider both CTP (Cell-to-Pack) and CTC approaches in its next-generation battery integration technology. In June of the same year, Volvo also revealed information about its next-generation CTC battery technology, stating that its third-generation battery system integration technology would use a CTC solution and prismatic cells.
Among battery manufacturers, CATL announced earlier this year that it will officially launch its highly integrated CTC battery technology around 2025. In addition, LG New Energy also has related technology plans.
Behind the increased investment from numerous companies lies the advantage and market prospect of CTC (Cell-to-Chip) technology. Guoxin Securities analysis states that the performance advantages of the CTC solution are reflected in its lightweight design, larger space, longer battery life, and stronger performance; in terms of space, the vertical space is increased by 10mm, and the battery placement space is increased by 14.5%; in terms of battery life, the battery insulation performance is optimized, and the battery life is improved by 10%.
Shengang Securities also pointed out that the essence of CTC is to integrate the battery pack casing and the vehicle's underfloor into one unit. Overall, the advantages of adopting CTC technology outweigh the disadvantages, helping automakers reduce costs and increase efficiency. Models equipped with CTC will achieve higher gross margins and longer driving ranges. According to Zeng Yuqun, Chairman of CATL, the cost of new energy vehicles using CTC technology can directly compete with that of gasoline vehicles, while also offering more passenger space.
Chen Zikun, chief analyst of the electric vehicle industry at GF Securities, believes that as battery manufacturers extend their product lines, such as from CTC (Consumer-Touched Battery) to chassis, the increase in per-vehicle output value and gross profit margin is sustainable. Analysts at Western Securities believe that given the difficulty in significantly improving battery energy density, integrated battery-vehicle technology is an effective solution, and predict that this technology will experience rapid development in the future.
However, CTC battery-body integration technology also has certain drawbacks. If the car malfunctions and the battery needs repair, this technology may require replacing the entire chassis, increasing repair costs.
Tianfeng Securities believes that battery-to-vehicle (CTC) technology is currently in the transition from concept to mass production. While technologies in the conceptual stage often seem distant, progress tends to exceed expectations once they are implemented. With numerous companies entering the market, CTC technology is expected to accelerate its large-scale mass production application. Guohai Securities predicts that the market size for battery-to-vehicle (CTC) technology in my country may reach 850 billion yuan by 2030.
