Chinese EV Maker CATL Pursues Global Expansion with Hong Kong Listing

Chinese EV battery manufacturer, Contemporary Amperex Technology (CATL) has unveiled plans to list in the Hong Kong stock exchange. According to Yahoo Finance, CATL’s Hong Kong listing is one way of expanding the EV maker’s global presence and boost its global battery market. CATL is the world’s biggest EV manufacturer.

Second Listing

CATL made public its plan to file for listing shortly after its board gave it a nod. However, the proposal is yet to be approved by its shareholders, who will be meeting on January 17, 2025. Approval by the Chinese regulator, China Securities Regulatory Commission is also pending.

The EV battery maker said it will decide on the appropriate time and stock issuance window. The company plans to complete the public offer within one and a half years. However, it will do so based on the interest of current shareholders and the onshore and offshore capital markets.

This will be the second listing for the EV battery manufacturer. CATL is currently listed on the Shenzhen stock exchange. Its shares dropped by 2.4% on Friday’s trading session. CATL stocks have gained more than 66% this year. Although CATL has not finalized details about its share offer, the company may possibly raise $5 billion through the Hong Kong listing.

CATL’s Expansion

In recent months, CATL has been maneuvering price wars and political tensions that have rocked the EV sector in China’s mainland. Previously, CATL’s founder and chairman Robin Zeng Yuqun urged Chinese EV makers to quit the price wars and instead focus on enhancing product reliability. These challenges have fueled CATL’s EV batteries expansion plans. The move to list in Hong Kong is aimed at raising capital it needs to realize those plans. CATL’s biggest customers include BMW and Tesla.

“CATL, as a market leader in EV batteries, is active in expanding its businesses around the world to promote electric cars. Fresh capital is needed to support its ambitious plans,” Senior Executive at Suzhou Hazardtex Davis Zhang said.

In addition to manufacturing CATL EV batteries, the company has sought to diversify revenue generation by making an EV chassis, which it unveiled on December 24, 2024. The chassis can take 75 mph frontal impact without exploding or catching fire.

Earlier this month, CATL revealed plans to set up a third battery manufacturing plant in Europe through a joint venture with Stellantis. This move is aimed at overcoming high tariffs imposed on Chinese imports and expanding the CATL EV battery market. The two companies agreed to spend $4.3 billion each in the construction of the factory. The EV battery plant will be located in Spain and is expected to have an output of 50GWh of batteries each year.

Interest in Hong Kong

CATL is the latest company to join the long list of Chinese firms that are planning to list on the Hong Kong stock exchange. Others include Shanghai-listed Foshan Haitian Flavoring and Food and Jiangsu Hengrui Pharmaceuticals. This is happening against a backdrop of strong regulatory support in the city.

Deal makers see this move as one that will have a significant impact on Hong Kong’s IPO volume in the coming year. In October 2024, CATL unveiled an R&D center in Hong Kong. The company plans to commence 75 projects in this center. CATL held about 37% of the global battery market share between January and October of 2024. BYD, which is the world’s biggest EV manufacturer, had 16.8% of the market share.

Earlier this month, BYD data showed that it was on its way to overtake Honda and Ford global sales after it reported record breaking sales. The EV car maker reported a 16.6% increase in November sales revenue compared to the same time last year.

Overall, CATL delivered up to 252.8 GWh of batteries over the same period. This was a 28% increase from the previous year. A single GWh is sufficient to power an estimated 13,000 EVs, each with a driving range of about 500 kilometers.