Chinese battery giant Contemporary Amperex Technology Limited (CATL) is preparing to raise at least $4 billion through a secondary listing on the Hong Kong stock exchange. This potentially represents the largest global listing in 2025 so far, according to the Financial Times.
The company will price its shares this week, with trading scheduled to begin on May 20, 2025.
Who Is CATL and Why They Matter
CATL has emerged as the world’s largest producer of electric vehicle and energy storage batteries. The company is headquartered in Ningde, south-eastern China, where it began its operations. While already listed on the Shenzhen stock exchange, CATL has expanded its manufacturing footprint globally, with production bases in China and growing operations in Germany, Hungary, Spain, and Indonesia.
The battery maker generated impressive revenues of $50 billion in 2024, with 69.5% coming from the Chinese market. Electric vehicle batteries represent the core of their business, accounting for 70% of their sales. CATL has partnerships with major automakers like Tesla and Ford, licensing its battery manufacturing technology.
Inside the Listing: Details and Purpose
The Hong Kong offering has attracted more than 20 cornerstone investors, including Sinopec, Kuwait Investment Authority, Hillhouse Capital, Taikang Life, and various Chinese local government funds. US investment banks JPMorgan and Bank of America are serving as underwriters for the deal. With a potential greenshoe option, the total raised could exceed $5 billion.
Approximately 90% of the new capital (HK$27.6 billion) will fund production lines in Hungary. This strategic investment aims to strengthen CATL’s European presence, positioning the company to better serve major automotive clients in the region.
Revolutionary Battery Technologies
CATL’s growth is powered by innovative battery technologies that push the boundaries of what electric vehicles can achieve:
- Shenxing Battery: The world’s first LFP (lithium iron phosphate) battery offering 800 km range with extremely fast charging capabilities – its 12C peak charging rate adds 2.5 km of range every second, making it comparable to refueling a gasoline car.
- Naxtra Battery: This sodium-ion technology delivers 175 Wh/kg energy density while maintaining 90% power even in extreme temperatures from -40°C to +70°C, with an exceptional 10,000 cycle lifespan that far exceeds typical batteries.
- Freevoy Battery: Utilizing a revolutionary dual-core architecture that enables vehicles to travel up to 1500km on a single charge – nearly double the range of most current electric vehicles.
Opportunities and Challenges Ahead
The Hong Kong listing offers both opportunities and challenges for CATL:
| Benefits | Challenges |
|---|---|
| Provides broader international investor access than Shenzhen listing alone, tapping deeper global capital pools | Historical data shows mega-IPOs over $5 billion yield positive first-year returns only 14% of the time |
| Enables valuation alignment with global industry peers through dual-market presence | The “Reg S” offering structure excludes US onshore investors, potentially limiting the investor pool |
| Secures funding for strategic European expansion through Hungarian factory | Faces potential US market challenges due to national security concerns despite CATL stating it “has never engaged in any military-related businesses” |
The company has specifically noted that US tariff policies are “rapidly evolving,” creating uncertainty for its North American strategy.
CATL’s Hong Kong listing represents a significant milestone in the global electric vehicle supply chain. As the battery maker continues expanding beyond China, this capital raise will fund crucial international growth while potentially reshaping the competitive landscape of the EV battery industry.
