China: Shares of the world’s largest EV battery maker, Contemporary Amperex Technology Co Limited (CATL), has surged as much as 18 percent on their first day of trading in Hong Kong, following the year’s biggest initial public offering (IPO). The Chinese battery giant raised nearly $4.55 billion (HK$35.7 billion) in the high-profile listing.
CATL, which already trades on China’s Shenzhen Stock Exchange with a valuation exceeding $138.7 billion, manufactures over one-third of all EV batteries sold globally. Its clients include Tesla, Volkswagen, Toyota, and other major automakers.
Despite escalating US-China tensions and ongoing tariff pressures, analysts believe CATL’s limited exposure to the US market will help shield it from potential fallout. Neil Beveridge, head of Asia research at Bernstein stated that, “The direct implications of what we are seeing with tariffs will only have a limited effect on the company.”
The firm’s rapid expansion has been driven by China’s booming EV sector. Founded in 2011 in Ningde, eastern China, CATL now employs more than 100,000 people and operates 13 production plants worldwide. The company is also developing in Europe, with a second factory under construction in Hungary and a new $4.3 billion plant set to open in Spain in partnership with Stellantis by the end of 2026.
In addition to its manufacturing capabilities, CATL has six global R&D centres and continues to invest heavily in battery innovation. Last month, it unveiled a breakthrough battery capable of charging up to 323 miles (520km) in just five minutes.
However, the company’s ties to China’s government remain a point of contention. In January, the US Department of Defence added CATL to a list of firms allegedly linked to China’s military, an accusation the company strongly denies, calling its inclusion a mistake.
In April, US lawmakers urged JPMorgan and Bank of America to cut ties with CATL’s Hong Kong listing, citing national security issues. Yet some experts argue this stance could backfire.
Tim Buckley, founder of Australian think tank Climate Energy Finance remarked that, “They’re rejecting by far the best technology players in the world when it comes to clean tech. The US should be collaborating with China on renewable energy, not isolating its leaders.” CATL remains a key battery supplier to Tesla’s Shanghai factory, providing lithium iron phosphate batteries critical to the automaker’s global EV output.
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