In a significant development for the clean energy sector, Contemporary Amperex Technology Co. Ltd. (CATL), China’s leading electric vehicle battery manufacturer, raised $4.6 billion in its Hong Kong trading debut, marking the largest listing globally this year. Shares surged by up to 18.4% above the initial offering price of 263 Hong Kong dollars ($33.61). CATL controls over a third of the global EV battery market and supplies major automakers like Tesla and Ford. Founder Robin Zeng highlighted the listing’s importance in promoting a global zero-carbon economy.
Despite U.S.-China tensions limiting U.S. investors’ access to CATL stock, demand remained high. Many Chinese firms prefer listing in Hong Kong to alleviate geopolitical risks and enhance regional market integration. CATL is among firms blacklisted by the Pentagon over alleged military ties, which the company denies. Recent tariffs imposed by the Biden and Trump administrations on Chinese EVs and battery imports pose challenges for CATL, though it claims the impact on its limited U.S. business is minimal.
Founded in 2011, CATL generated $50 billion in revenue last year, primarily from the Chinese market. The company actively plans to use the funds raised for a $7.3 billion factory in Hungary, expanding its international presence to compete globally. Analysts suggest that as Chinese manufacturers dominate battery technology, they could inadvertently create jobs in the U.S. Moving forward, lowering battery pack prices remains key to making EVs more affordable, a challenge that CATL and other Chinese firms are well-positioned to tackle.
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