Contemporary Amperex Technology Co. Limited (CATL), the world’s largest manufacturer of electric vehicle (EV) batteries, is preparing to raise at least $4 billion through a major share offering in Hong Kong. The secondary listing, which will price this week and begin trading on May 20, is expected to be the biggest share sale in the city this year.
According to its prospectus filed with the Hong Kong Largest Share Exchange, CATL’s offering has attracted strong interest from major cornerstone investors. These include Chinese oil conglomerate Sinopec, the Kuwait Investment Authority, investment group Hillhouse Capital, insurer Taikang Life, and various Chinese regional government funds.
Strong Investor Confidence Despite Modest Pricing Discount
The pricing of the Hong Kong Largest Share is set at just 1.4 percent below the company’s Shenzhen-traded stock, signaling robust investor demand. At Monday’s opening, CATL’s Shenzhen shares rose nearly 3 percent to RMB 255 ($35.30), reinforcing optimism around the upcoming offering.
If demand remains strong and the greenshoe option—a mechanism that allows underwriters to sell additional shares—is exercised, the offering could raise more than $5 billion. CATL’s listing is being underwritten primarily by U.S. investment banks such as JPMorgan and Bank of America, even though a U.S. congressional committee had recently urged American banks to withdraw from the deal.
Global Expansion Amid Geopolitical Pressures
Based in Ningde, southeastern China, CATL has seen explosive growth driven by China’s booming EV market. It has also launched an aggressive global expansion strategy, with new battery factories in Europe and technology licensing agreements with American automakers such as Tesla and Ford.
Currently operating 11 major domestic manufacturing bases in China, the company is channeling 90 percent of the capital raised—approximately HK$27.6 billion ($3.5 billion)—into developing production lines in Hungary. This expansion is a critical component of CATL’s push into the European market.
Despite international success, CATL is under growing scrutiny from U.S. authorities due to concerns about national security and alleged links to the Chinese military. The U.S. Department of Defense recently added CATL to a list of companies it claims have ties to China’s armed forces. However, the company has firmly denied these accusations, stating it has never participated in military-related business and is actively engaging with U.S. officials to challenge the designation.
Balancing Global Growth With Domestic Strength
CATL’s financial performance in 2024 reflected its dominant position in the industry. The company generated $50 billion in revenues, with 69.5 percent of sales coming from the Chinese market and the rest largely from Europe. EV batteries accounted for 70 percent of total revenue, followed by energy storage systems at 16 percent, and the rest from battery materials, recycling, and mineral resources.
While the majority of its revenue still originates domestically, CATL’s growing footprint in global markets and its partnerships with top automakers reflect its expanding influence in the clean energy transition.
Looking Ahead
The timing of the share sale also coincides with signals of progress in U.S.-China trade relations. Washington recently reported substantial advancement in trade talks with Chinese officials in Geneva, suggesting a potential easing of tensions. Nevertheless, CATL noted in its filing that the landscape of international tariffs remains unpredictable and could influence future operations.
As CATL prepares for its Hong Kong Largest Share listing, the company’s blend of domestic dominance and international ambition puts it in a strategic position to shape the future of EV battery technology. The funds raised will not only accelerate global expansion but also reinforce its status as a cornerstone of the world’s energy transition.
