Tesla Battery Maker CATL Sees Shares Jump in Hong Kong Debut
The world’s largest electric vehicle (EV) battery maker, Contemporary Amperex Technology Co Limited (CATL), has seen its shares jump on their first day of trading in Hong Kong following the biggest initial public offering (IPO) so far this year.
CATL produces more than a third of all EV batteries sold worldwide and supplies major carmakers including Tesla, Volkswagen, and Toyota. The company raised almost HK$35.7bn ($4.55bn; £3.4bn) from the listing, with its shares climbing by as much as 18%.
“The performance of the stock was very good in what is going to be a key IPO for Hong Kong given the size of the listing,” said Neil Beveridge, head of research for Asia at Bernstein. CATL already trades on China’s Shenzhen Stock Exchange, where it has a valuation of more than one trillion yuan ($138.7bn; £104.3bn).
The company is heavily reliant on the Chinese market, with almost 70% of its total revenue coming from there. However, according to Mr. Beveridge, CATL’s relatively small sales to the US will shield it from Trump’s trade policies. “The direct implications of what we are seeing with tariffs will only have a limited effect on the company,” he explained.
Founded in 2011 in Ningde, China, CATL has enjoyed rapid growth thanks to the boom in the country’s EV industry. The battery giant employs more than 100,000 people and has 13 production plants around the world. It is currently building its second European factory in Hungary, after opening a plant in Germany in early 2023.
In December, CATL announced a partnership with Chrysler-owner Stellantis to build a $4.3bn (£3.2bn) EV battery plant in Spain, set to be operational by the end of next year. The company invests heavily in new technology, with six research and development centers worldwide.
“The innovations that we’re seeing from CATL are unbelievable, particularly in the fast charging area,” said Tim Buckley, founder of Climate Energy Finance. Last month, CATL unveiled a new battery that can be charged for 323 miles (520km) in just five minutes.
CATL is a major supplier to Tesla, providing lithium iron phosphate batteries for the EV maker’s Shanghai factory. However, US lawmakers have expressed concerns about potential national security risks surrounding the Chinese company. Despite this, Mr. Buckley believes the US should work with Beijing on advancing renewable energy, stating, “They’re rejecting by far the best technology players in the world when it comes to clean tech.”
