[SMM Analysis] Differences in Power Battery PACK Technology Directions and Current Industry Situation

In the power battery industry chain, the power battery PACK belongs to the midstream segment. The upstream segment involves processing raw materials into battery cell materials, mainly including cathode, anode, electrolyte, and separator. In the power battery PACK segment, battery cells are integrated, and BMS solutions are designed to package them into battery modules, which are then applied in the downstream NEV industry.

The latest technological innovations in the power battery PACK industry are mainly concentrated in the following areas:

CTP (Cell to Pack) Technology: CATL pioneered the CTP technology, which is a module-free battery pack technology. By directly integrating battery cells into the battery pack, it reduces the number of components and improves space utilization and energy density. The third-generation CTP technology—Qilin battery—further enhances this, achieving a volume utilization rate of 72%, significantly improving the energy density and fast charging performance of the battery system.
Blade Battery Technology: BYD's blade battery adopts an array arrangement, with an energy density of up to 180Wh/kg, an increase of about 9%. This design not only improves energy density but also reduces manufacturing costs.
JTM (Jelly Roll to Module) Technology: Gotion High-tech proposed the JTM technology, which achieves one-time production by placing the jelly roll in the module, improving the efficiency of single-cell to module grouping to over 90% and increasing the system energy density to 180Wh/kg.
One-Stop-Battery and Short Blade Technology: CALB and SVOLT Energy Technology introduced the One-Stop-Battery and short blade technology, which simplify the battery structure, improving the space utilization of power batteries and thereby enhancing energy density.
CTB (Cell to Body) and MTC (Module to Chassis) Technology: BYD's CTB solution highly integrates the battery pack with the auto body, enhancing the vehicle's torsional rigidity and suppressing body vibration; Leap Motor's MTC solution directly integrates the module into the car chassis, reducing the number of components and costs; Tesla's CTC solution combines the upper shell of the battery pack with the lower floor of the auto body, achieving weight reduction and lowering battery costs.
Innovative Design of Qilin Battery: The Qilin battery has made several innovations in PACK structure, including large-area cell cooling technology and 4C fast charging technology. The former places a water-cooling plate between two cells, expanding the area fourfold, effectively reducing the impact of high temperatures on battery cycle life; the latter can dissipate the heat generated by fast charging, improving charge and discharge efficiency and enhancing vehicle competitiveness.
The cost structure of the power battery PACK industry mainly includes battery cell materials, structural systems, thermal management systems, and battery management systems. Currently, the cost of the PACK shell accounts for a large proportion, and the cost of ternary battery PACK is higher than that of LFP battery PACK. According to SMM data, the current price of a prismatic LFP PACK (51.9KWh) is 0.54 yuan/Wh, and the price of a 6-series square ternary PACK is 0.7 yuan/Wh. Currently, the price war in the NEV industry continues, making cost reduction an urgent need for enterprise development. The PACK segment accounts for 8-9% of the production cost of power batteries, making it a key area for enterprises to achieve cost reduction. After experiencing a period of rapid price decline, the profit margins of manufacturers have been compressed to a low level, and the rate of price decline has significantly slowed down.