The world’s largest electric vehicle (EV) battery maker has made its debut on the Hong Kong Stock Exchange, in the biggest initial public offering (IPO) so far this year.
In January, the US Department of Defense added the battery maker to a list of businesses it says works with China’s military.
In December, the firm announced a tie-up with Chrysler-owner Stellantis to build a $4.3bn (£3.2bn) EV battery plant in Spain.
CATL is a major supplier to Elon Musk’s Tesla, providing lithium iron phosphate batteries for the EV makers Shanghai factory.
In April, the chair of the House Select Committee on China wrote letters to the chief executives of JPMorgan and Bank of America, asking them to withdraw from working on CATL’s Hong Kong listing.
In the largest initial public offering (IPO) of the year, the largest manufacturer of electric vehicle (EV) batteries in the world debuted on the Hong Kong Stock Exchange.
More than a third of all EV batteries sold globally are made by China’s Contemporary Amperex Technology Co Limited (CATL), which also supplies major automakers like Tesla, Volkswagen, and Toyota.
Through the listing, the company raised nearly HK$35.7 billion ($4.55 billion, £3.4 billion). At the start of trading, its stock surged by over 10%.
The battery manufacturer was included in a list of companies the US Department of Defense claims collaborate with China’s military in January. CATL disputes this, saying it was a “mistake” to be on the list.
According to Neil Beveridge, head of research for Asia at Bernstein, “the stock performed very well in what is going to be a key IPO for Hong Kong given the size of the listing.”.
With a valuation of over 1 trillion yuan ($138.7 billion, £104.3 billion), the company is already listed on the Shenzhen Stock Exchange in China.
It was established in 2011 in the city of Ningde in eastern China, and the country’s EV industry boom allowed it to grow quickly.
The battery behemoth has 13 manufacturing facilities worldwide and employs more than 100,000 people.
CATL opened a plant in Germany in early 2023 and is now constructing its second European factory in Hungary.
In December, the company announced a partnership with Stellantis, a Chrysler owner, to construct a $4.3 billion (£3.2 billion) EV battery plant in Spain. By the end of the following year, the facility is expected to be operational.
The company has six research and development facilities worldwide and makes significant investments in new technology.
Tim Buckley, founder of the independent Australian think tank Climate Energy Finance, stated, “The innovations that we’re seeing from CATL are unbelievable, particularly in the fast charging area.”.
The business debuted a new battery last month that, according to the company, can be charged for 323 miles (520 km) in just five minutes.
CATL is a significant supplier of lithium iron phosphate batteries for the Shanghai factory of Elon Musk’s Tesla.
US lawmakers, however, have voiced worries about the Chinese company’s possible threats to national security.
The head of the House Select Committee on China requested in letters to JPMorgan and Bank of America’s CEOs in April that they step aside from their involvement in CATL’s Hong Kong listing.
Mr. Buckley says the US should look to collaborate with Beijing on the development of renewable energy, despite Washington’s mistrust of Chinese companies.
He told the BBC that “they’re rejecting by far the best technology players in the world when it comes to clean tech.”.
