CATL, the world’s largest electric vehicle battery maker, made a powerful entry into the Hong Kong stock market. On its first day of trading, its shares jumped by 18%. As a result, the company raised nearly HK$35.7 billion ($4.55 billion).
Supplying the World’s Biggest Carmakers
Currently, CATL produces over one-third of all EV batteries worldwide. It supplies major global car brands like Tesla, Toyota, and Volkswagen. Therefore, the company holds a strong position in the fast-growing EV industry.
IPO Gains Attention Amid Trade Tensions
Meanwhile, CATL’s stock debut gained attention due to the ongoing US-China tariff war. The conflict has disrupted global trade and affected the auto industry. Despite this, analysts praised CATL’s performance.
Neil Beveridge, research head at Bernstein, said, “The performance of the stock was very good in what is going to be a key IPO for Hong Kong given the size of the listing.”
U.S. Military Link Claim Sparks Debate
Earlier this year, the U.S. Department of Defense added CATL to a list of firms allegedly connected to China’s military. However, CATL denied the charge, saying the move was a “mistake.”
Chinese Market Powers CATL’s Growth
At present, CATL already trades on China’s Shenzhen Stock Exchange. Its total valuation there is over 1 trillion yuan ($138.7 billion). Moreover, China accounts for about 70% of its total revenue. Because of this, the company is not heavily impacted by U.S. trade policies.
Beveridge explained, “The direct implications of what we are seeing with tariffs will only have a limited effect on the company.”
Rapid Expansion in Europe
Founded in 2011 in the eastern Chinese city of Ningde, CATL grew quickly as China’s EV sector boomed. Today, it employs over 100,000 people and operates 13 factories worldwide.
Furthermore, the company is expanding in Europe. After opening a German plant in 2023, CATL is now building a second European factory in Hungary. Additionally, in December, it teamed up with Stellantis to launch a $4.3 billion battery plant in Spain. That plant is expected to open by the end of next year.
Heavy Investment in Innovation
In addition to expanding production, CATL focuses strongly on research and development. It has six R&D centers across the globe. Tim Buckley, founder of the Australian think tank Climate Energy Finance, praised their innovation.
He said, “The innovations that we’re seeing from CATL are unbelievable, particularly in the fast charging area.”
Last month, CATL introduced a new battery that can deliver a 323-mile (520 km) range after just five minutes of charging.
Supplying Tesla Despite U.S. Concerns
CATL also supplies Tesla’s Shanghai factory with lithium iron phosphate batteries. Nevertheless, U.S. lawmakers have raised national security concerns.
In April, the chairman of the House Select Committee on China urged JPMorgan and Bank of America to cut ties with CATL’s Hong Kong IPO.
Experts Urge Cooperation, Not Isolation
Despite political tension, some experts believe the U.S. should partner with China on clean energy. Buckley said, “They’re rejecting by far the best technology players in the world when it comes to clean tech.”
