China’s Contemporary Amperex Technology (CATL), the world’s largest producer of electric vehicle (EV) batteries and a key supplier for Tesla, has applied for a listing on the Hong Kong Stock Exchange, setting the stage for one of the city’s largest stock offerings in recent years.
The battery giant aims to raise at least $5 billion, according to Reuters. This would mark CATL’s second public listing, following its $6.7 billion IPO on China’s Shenzhen exchange in 2022.
Expanding Global Footprint
Based in Ningde, Fujian, CATL supplies batteries to major automakers including BMW, Volkswagen, and Ford. The company first announced its intention to list in Hong Kong last December as part of its strategy to expand its global presence. A portion of the funds raised will be allocated toward its international expansion, particularly the construction of its Hungary plant, according to a draft application filed with the Hong Kong Stock Exchange on Tuesday.
While key details, such as the number of shares to be issued and the total amount to be raised, remain undisclosed, CATL did not specify a timeline for the listing. CNN has reached out to the company for further comments.
Geopolitical Challenges and Market Dominance
As of last year, CATL operated 13 battery factories worldwide, including facilities in China and Germany. It has also announced a joint venture in Spain with Stellantis, the owner of Fiat and Chrysler, to build a battery plant, and is planning additional projects in Indonesia.
However, CATL’s offshore listing comes amid intensifying geopolitical tensions. The company acknowledged potential risks in its filing, including tariffs on Chinese imports, but did not reference the recent 10% tariff imposed by the U.S. government.
Last month, the Pentagon added CATL to its blacklist of companies allegedly linked to the Chinese military, barring it from securing U.S. Department of Defense contracts. CATL dismissed the designation as a “mistake,” asserting that it would proactively engage with U.S. authorities to rectify the situation.
“This designation does not restrict us from conducting business with entities other than a small number of U.S. government authorities and is expected to have no substantial adverse impact on our business,” the company stated in its filing.
Market Leadership and Financial Strength
CATL has retained its position as the world’s largest EV battery supplier for the eighth consecutive year, holding a 38% share of the global market in 2024, according to SNE Research. By the end of last year, CATL batteries powered one in three EVs worldwide, amounting to approximately 17 million vehicles.
The company reported revenue of 400.9 billion yuan ($54.8 billion) in 2023 and 259 billion yuan ($35.4 billion) for the first three quarters of last year.
Foreign Automakers Continue China Investments
Despite geopolitical challenges, some foreign automakers are reinforcing their presence in China, the world’s largest auto market.
On Tuesday, Tesla began production at its battery factory in Shanghai, adjacent to its EV manufacturing plant, as reported by China’s official Xinhua news agency. Meanwhile, Toyota announced plans to manufacture EVs and batteries for its Lexus brand in Shanghai under a wholly owned company, with production expected to start in 2027.
As CATL prepares for its Hong Kong listing, the company remains a dominant force in the EV battery sector, navigating regulatory challenges while expanding its global footprint.
