World’s Largest EV Battery Maker Eyes Blockbuster Hong Kong Listing

China’s leading EV battery manufacturer, Contemporary Amperex Technology (CATL), is gearing up for a major listing in Hong Kong, targeting at least $5 billion in fresh capital. After raising $6.7 billion in Shenzhen in 2022, this marks its second public offering. 

The move is a sign of CATL’s ambitions to expand globally, with plans to fund new projects, particularly its Hungary plant, which is set to strengthen its foothold in Europe.

As the dominant player in the EV battery market for eight consecutive years, CATL supplied batteries for one in three electric vehicles worldwide, powering 17 million units. Holding a 38% market share, the company generated $54.8 billion in revenue for 2023 and reported $35.4 billion in the first three quarters alone. Its client base includes Tesla, BMW, Volkswagen, and Ford, making it a key part of the EV supply chain.

Despite its growth trajectory, there are geopolitical challenges around. The Pentagon recently blacklisted CATL, citing alleged military ties, though the company dismissed the designation as a mistake and vowed to engage with U.S. authorities. 

What Does This Mean for Me?

Trade tensions continue to weigh on its prospects, with Washington imposing a 10% tariff on Chinese imports. While the filing did not explicitly address the tariff, CATL acknowledged the broader risks posed by regulatory shifts.

The listing also comes at a time when Western automakers reassess their China strategy. Tesla recently ramped up battery production in Shanghai, while Toyota announced plans to manufacture EVs and batteries under its Lexus brand, aiming to start operations in 2027. CATL’s latest move signals its intent to stay ahead in an increasingly competitive and politically fraught industry.