China’s Contemporary Amperex Technology Co. Limited (CATL), the world’s largest electric vehicle (EV) battery manufacturer, marked a successful debut on the Hong Kong Stock Exchange, achieving the largest initial public offering (IPO) of the year so far. On its first day of trading, CATL shares surged more than 10%, raising nearly HK$35.7 billion (approximately $4.55 billion). The strong performance underscores investor confidence in the EV Battery Giant CATL, which already commands more than one-third of the global EV battery market and supplies major automakers including Tesla, Volkswagen, and Toyota.
Neil Beveridge, head of Asia research at Bernstein, described the stock’s performance as “very good” and emphasized the significance of the listing for Hong Kong’s market landscape. The IPO comes during heightened tensions in global trade, with the US-China tariff dispute continuing to affect the automotive sector. CATL’s solid debut offers a counterpoint to these uncertainties, reflecting the company’s dominant market position and potential for further global expansion.
Global Reach, Innovation Drive, and Expansion Plans
Founded in 2011 in Ningde, China, EV battery giant CATL has experienced meteoric growth on the back of China’s rapid adoption of electric vehicles. With over 100,000 employees and 13 production facilities worldwide, the company continues to expand its global footprint. After opening a German factory in 2023, CATL is currently constructing a second European plant in Hungary. Additionally, it has partnered with Stellantis, the parent company of Chrysler, to develop a $4.3 billion EV battery Giant CATL facility in Spain, expected to be operational by the end of next year.
CATL places significant emphasis on research and innovation, operating six R&D centers across the globe. Its latest breakthrough, a EV battery giant CATL capable of delivering a 323-mile (520 km) charge in just five minutes, has drawn widespread attention. Tim Buckley, founder of Australian think tank Climate Energy Finance, praised the company’s advancements, particularly in fast-charging technology, calling them “unbelievable.”
CATL is a key supplier to Tesla’s Shanghai factory, providing lithium-iron phosphate batteries. The firm also trades on China’s Shenzhen Stock Exchange, where it holds a valuation exceeding 1 trillion yuan (around $138.7 billion).
Political Tensions and Security Concerns Cast Shadows
Despite its success, CATL faces geopolitical challenges. Earlier this year, the U.S. Department of Defense placed CATL on a list of companies allegedly linked to China’s military, a claim the company has denied, calling the move a “mistake.” The listing has sparked concerns in Washington over potential national security risks associated with Chinese tech firms.
In April, the chair of the U.S. House Select Committee on China sent letters to top executives at JPMorgan and Bank of America, urging them to cut ties with CATL’s Hong Kong IPO. While the U.S. remains a relatively minor market for CATL, accounting for a small portion of its revenue, the political scrutiny poses a potential barrier to expansion in the West.
Nonetheless, Buckley argues that the U.S. should engage with China on clean energy, stating, “They’re rejecting by far the best technology players in the world when it comes to clean tech.” As global demand for EVs accelerates, CATL appears poised to remain a central player, despite the political headwinds.
