CATL to Raise $4 Billion in Hong Kong Listing to Fuel Global Expansion

Contemporary Amperex Technology Co. Ltd. (CATL), the world’s largest electric vehicle (EV) battery manufacturer and a key supplier to Tesla, is set to raise at least $4 billion through a secondary listing on the Hong Kong Stock Exchange. This move marks the largest global share sale of 2025 thus far and underscores CATL’s ambition to strengthen its position in the global EV supply chain.

Details of the Offering

CATL plans to offer 117.9 million shares at HK$263 each, with the potential to increase the offering to $5.3 billion if certain options are exercised. The proceeds will primarily fund the construction of a new battery factory in Hungary, aimed at supplying European automakers such as BMW, Stellantis, and Volkswagen. Over 20 cornerstone investors, including Sinopec and the Kuwait Investment Authority, have committed to purchasing $2.62 billion in shares. Institutional investors will receive 109.1 million shares, while 8.8 million will be available to retail investors in Hong Kong. The shares are scheduled to start trading on May 20 under the symbol “3750.”

Strategic Expansion in Europe

The funds raised will support CATL’s expansion into Europe, a key market for EV batteries. The new factory in Hungary is expected to enhance CATL’s ability to meet the growing demand for EV batteries in the region. This move aligns with Europe’s efforts to reduce reliance on Asian suppliers and promote green energy initiatives.

Financial Performance and Market Position

CATL reported $50 billion in revenue for 2024, with 70% derived from EV batteries. The company holds a global market share of around 37% in EV batteries and 40% in energy storage systems. Analysts project an operating profit of $10.6 billion in 2025, surpassing Tesla’s estimated $6.6 billion. The stock trades at about 17 times estimated 2025 earnings, and all 38 analysts covering the stock have issued Buy ratings, reflecting strong investor confidence.

Geopolitical Considerations

Despite being included on a U.S. Defense Department list, which restricts certain American investments, CATL has secured underwriting support from major U.S. banks such as JPMorgan and Bank of America for this listing. The company disputes its inclusion on the list and does not expect it to significantly impact operations. The IPO coincides with tentative U.S.-China trade discussions amid ongoing high tariffs.

Conclusion

CATL’s secondary listing in Hong Kong represents a significant step in its global expansion strategy. By raising funds to build a new battery factory in Hungary, CATL aims to strengthen its position in the European market and continue its leadership in the global EV battery industry. The company’s robust financial performance and strategic initiatives position it well for continued growth in the evolving EV landscape.