Article Summary
Contemporary Amperex Technology (CATL), the world’s largest battery manufacturer, saw its shares rise by over 18% in their Hong Kong trading debut on May 20, 2025. The company raised $4.6 billion in its IPO, making it the largest offering this year globally. Investors are optimistic about CATL’s ability to benefit from the electronic vehicle boom. The funds raised will primarily be used to build a factory in Hungary for supplying batteries to European automotive clients.
What This Means for You
- Investors can benefit from CATL’s strong performance, especially if they have a diversified portfolio with a focus on growth sectors like electric vehicles.
- Consider adding CATL to your watchlist, as its growth in the European market presents opportunities for long-term investment.
- Stay informed about international trade policies and tariffs, as they may impact CATL’s business and its competitors’ operations, affecting overall market dynamics.
- Keep an eye on the escalating U.S.-China trade tensions, as they could potentially lead to broader multilateral restrictions for CATL.
Original Post
Shares of CATL debut in Hong Kong on May 20, 2025.
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Shares of the world’s largest battery manufacturer Contemporary Amperex Technology (CATL) rose over 18% in their Hong Kong trading debut on Tuesday. The company raised $4.6 billion in its IPO, making it the largest offering this year globally. Investors are betting on CATL’s ability to ride the boom in electronic vehicles. Shares were last trading at 309 Hong Kong dollars apiece on the Hong Kong stock exchange, compared with the initial public offering price of HK$263 per share.
CATL’s IPO raised HK$35.7 billion ($4.6 billion) according to a company filing. The company’s shares, which had opened lower on mainland China’s Shenzhen stock exchange, reversed course to rise 1.5% to 264 Chinese yuan.
“I think that as the H shares continue to perform strongly, that will pull up the A shares,” Neil Beveridge, senior research analyst at Bernstein, told CNBC’s “The China Connection.”
“For the H shares to be trading above the A shares just shows how exceptional the demand is for this company, particularly from global investors,” he added.
CATL said in its Hong Kong filing that 90% of the funds raised will go toward building its upcoming factory in Hungary, aimed at supplying batteries to European automotive clients, including Stellantis, BMW and Volkswagen.
“Europe is an exceptionally important market for CATL,” said Beveridge, adding that the company’s growth in China was going to slow over the coming years due to already high sales penetration. “Europe’s only at about 20-25% [sales] penetration, so there’s still a lot of growth there to come,” he added.
The company’s push into Europe coincided with global expansions from leading Chinese EV makers such as BYD. These efforts also come amid increased scrutiny from the U.S. and EU, which placed punitive tariffs on EVs made in China last year, citing unfair trade practices.
CATL also found itself in the crosshairs of U.S.-China trade earlier this year, with the Pentagon putting it on a watchlist in January over suspected links to China’s military — allegations the company has rejected.
According to Bill Russo, founder and CEO of investment advisory firm Automobility, the watchlist designation, coupled with Trump’s latest tariffs on China, may complicate the company’s U.S.-related business.
However, the impact on its global ambitions will likely be limited unless broader multilateral restrictions follow, as CATL’s core strategy remains focused on markets such as Europe and emerging regions, he said.
In March, CATL posted a 9.7% drop in its 2024 annual revenue, hit by intense competition in China’s EV market that pressured the world’s top battery producer. Still, the company’s net profit went up by 15% year over year.
Demand for EVs in China, a critical market for CATL, gained momentum last year on the back
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