China’s Contemporary Amperex Technology (CATL), the world’s largest electric vehicle battery producer and a supplier to companies like Tesla, has applied for a listing on the Hong Kong Stock Exchange. The company aims to raise at least $5 billion in what could be one of the city’s largest stock offerings in recent years. This would be CATL’s second public listing, following its 2022 IPO on China’s Shenzhen exchange, where it raised $6.7 billion.
The battery maker, based in Ningde, Fujian, also supplies major automakers like BMW, Volkswagen, and Ford. It announced its intention to list in Hong Kong last December as part of a strategy to expand its global presence. The funds raised will partly go toward expanding operations, particularly in Europe, including the construction of CATL’s plant in Hungary.
Although key details such as the number of shares to be issued and the total amount to be raised have been redacted, the company did not specify a timeline for the listing. CATL operates 13 battery factories worldwide, including in China and Germany, and is working on a joint venture with Stellantis in Spain to build a battery plant. The company is also planning projects in Indonesia.
CATL’s offshore listing comes amid rising geopolitical tensions, which present risks such as tariffs. The company noted that it faces uncertainties in its operations but did not specifically mention the recent 10% tariff on Chinese imports imposed by US President Donald Trump.
Last month, the Pentagon added CATL to its blacklist, limiting its ability to engage in contracts with the Department of Defense. However, CATL called this a “mistake,” asserting that it would engage with the DoD to address the issue and emphasized that it would not significantly impact its business, as it only restricts dealings with a small number of US government entities.
In 2024, CATL maintained its position as the largest electric battery supplier for the eighth consecutive year, holding a 38% global market share. The company’s batteries are used in about one-third of all electric vehicles worldwide, powering approximately 17 million vehicles. CATL reported revenue of 400.9 billion yuan ($54.8 billion) in 2023 and 259 billion yuan ($35.4 billion) in the first three quarters of 2024.
Amid growing geopolitical risks and a struggling economy in China, some foreign automakers are still focusing on the Chinese market. For instance, Tesla recently began production at its new battery factory in Shanghai, which is located next to its existing EV factory. Additionally, Toyota announced plans to produce EVs and batteries for its Lexus brand in Shanghai, with production set to begin in 2027.