China’s Contemporary Amperex Technology (CATL), the world’s largest producer of batteries for electric vehicles and a supplier for Tesla, has applied for a listing in Hong Kong, aiming for one of the city’s largest stock offerings in recent years. The battery giant is looking to raise at least $5 billion, which would mark its second listing after a successful IPO on China’s Shenzhen exchange in 2022.
CATL, headquartered in Ningde, Fujian, and a key supplier to major automakers such as BMW, Volkswagen, and Ford, announced its intention to list on the Hong Kong Stock Exchange in December. The company plans to utilize a portion of the funds raised to expand its global presence, including the construction of a new plant in Hungary.
While specific details such as the number of shares to be issued and the total amount to be raised were not disclosed in the draft application filed with the Hong Kong Stock Exchange, CATL highlighted its existing operations, with 13 battery factories worldwide, including facilities in China and Germany. The company is also working on joint ventures in Spain and Indonesia to bolster its battery production capabilities.
Despite geopolitical tensions and potential risks such as tariffs, CATL remains optimistic about its business prospects. The company recently faced challenges after being added to the Pentagon’s blacklist for alleged ties to the Chinese military, but it emphasized that this designation would not significantly impact its operations.
In 2024, CATL retained its position as the world’s largest electric battery supplier for the eighth consecutive year, capturing a substantial 38% share of the global market. The company’s batteries powered approximately one-third of all electric vehicles worldwide, totaling around 17 million vehicles by the end of last year.
Financially, CATL reported impressive revenue figures, with 400.9 billion yuan ($54.8 billion) in revenue for 2023 and 259 billion yuan ($35.4 billion) in revenue for the first three quarters of last year.
As CATL pursues its listing in Hong Kong, other major players in the electric vehicle industry are also making strategic moves. Tesla recently commenced production at its battery factory in Shanghai, while Toyota unveiled plans to manufacture EVs and batteries for its Lexus brand in Shanghai starting in 2027.
