When Zeng Qinghong, chairman of GAC Group, wryly remarked about "working for CATL," it highlighted a fundamental power shift in the new energy vehicle supply chain. Contemporary Amperex Technology Co. Limited (CATL), with its dominant position in power batteries, has emerged as the new "chain leader" - its market capitalization eclipsing that of EV startups like NIO, XPeng, and Li Auto.
Supply Chain Simplification: The Structural Revolution
The most significant difference between new energy vehicles and traditional combustion-engine cars lies in their core components. EVs replace complex internal combustion systems with a streamlined "three-electric" system (battery, motor, and electronic controls). This transformation has reduced the number of components by approximately one-third - from about 20,000 parts in conventional vehicles to 14,000-15,000 in EVs. Fewer components and reduced SKU complexity have fundamentally simplified the entire supply chain architecture.
The New Logistics Landscape: Materials In, Batteries Out
As supply chains evolve, logistics operations have adapted to focus on two critical flows: inbound raw material transportation and outbound finished battery distribution. Examining these processes reveals how lithium battery supply chains are transforming under new industry dynamics.
Raw Material Logistics: The Dominance of Short-Haul Trucking
BYD, China's leading EV and battery manufacturer, provides a compelling case study. In 2022, BYD surpassed FAW-Volkswagen to become China's best-selling automotive brand while maintaining complete vertical integration in battery production.
Market Scale: Industry estimates suggest China's lithium battery raw material transportation market could reach ¥500 million in 2023. With BYD's planned 691GWh production capacity, the company alone would require approximately 829,200 tons of battery materials, including:
- 331,680 tons of cathode materials
- 331,680 tons of anode materials
- 124,300 tons of electrolyte
- 41,460 tons of separator materials
Transportation Models: BYD's supply chain demonstrates the industry-standard "plant-to-plant" trucking model. Key suppliers provide materials with specialized packaging:
- Foam-wrapped, impact-resistant packaging for cathodes/anodes
- Temperature-controlled transport for electrolytes
- 13-meter semi-trailers (32-ton capacity) for bulk materials
Battery Logistics: Efficiency Through Short-Chain Distribution
The reduced component count and higher standardization in EV production enable more efficient battery logistics. Traditional automakers maintained extensive pre-assembly warehouses for combustion engine parts, but battery makers can implement streamlined solutions:
- Direct plant-to-plant transportation
- Vendor-managed inventory (VMI) systems
- Just-in-time (JIT) delivery models
Specialized hazardous materials transporters have displaced traditional automotive logistics providers in this space, as battery transport requires:
- Strict safety compliance
- Specialized handling expertise
- Cost-optimized solutions for heavy, dangerous goods
Conclusion: Logistics in the Age of Battery Dominance
CATL's ascent as supply chain leader has fundamentally altered automotive logistics. Simplified components enable more efficient material flows, while specialized battery transport requirements have reshaped the logistics provider landscape. As EV adoption grows, these logistics models will continue evolving - presenting both challenges and opportunities for transportation providers worldwide.