Tesla Battery Supplier CATL Sees Stock Surge in Hong Kong Market Debut
WafricNews – May 20, 2025
Hong Kong, China – Chinese battery giant CATL, the world’s largest maker of electric vehicle (EV) batteries, saw its shares jump by 18% on their first day of trading in Hong Kong, marking the largest IPO of 2025 so far.
The public offering raised nearly HK$35.7 billion (approximately $4.55 billion), underlining the continued global demand for clean energy infrastructure—even amid intensifying geopolitical pressure from the West.
Contemporary Amperex Technology Co. Limited (CATL) supplies key players in the auto industry, including Tesla, Toyota, and Volkswagen, and controls over one-third of the global EV battery market.
The high-profile listing comes at a tense time in US-China trade relations, with growing scrutiny of Chinese technology firms. In January, the U.S. Department of Defense added CATL to a list of companies allegedly linked to the Chinese military—a charge CATL denies, calling it a “mistake.”
Despite that blacklisting, investor appetite for the battery maker remains strong.
“This is a key IPO for Hong Kong’s market recovery. The performance was very strong considering the current climate,” said Neil Beveridge, head of Asia research at Bernstein.
A Global Battery Powerhouse
CATL is no newcomer to public markets—it is already listed on China’s Shenzhen Stock Exchange, where it holds a valuation above 1 trillion yuan (approx. $138 billion).
Founded in 2011 in Ningde, eastern China, the company has ridden the wave of China’s EV boom. Today, it employs more than 100,000 people and operates 13 manufacturing plants globally.
Though nearly 70% of CATL’s revenue still comes from the Chinese market, the firm has expanded rapidly into Europe. It opened its first factory in Germany in 2023 and is now building a second in Hungary. A major joint venture with Stellantis will also see a $4.3 billion battery plant open in Spain by the end of next year.
The company’s growing global reach comes amid an era of trade protectionism, with the U.S. imposing tariffs and expressing security concerns about Chinese tech firms. But analysts say CATL’s limited direct exposure to the American market may buffer it from the harshest impacts of Washington’s policies.
“Tariffs will have only limited effect on CATL,” Beveridge noted.
Tech Innovation Meets Political Tension
CATL isn’t just expanding its physical footprint—it’s pushing boundaries in battery innovation. The company has six R&D centres worldwide, and recently unveiled a fast-charging battery capable of powering an EV for over 500km (323 miles) in just five minutes.
“The pace of innovation at CATL is astonishing—especially in the fast-charging space,” said Tim Buckley, director of independent think tank Climate Energy Finance.
Yet, its technological prowess hasn’t stopped concerns from Washington. In April, U.S. lawmakers urged JPMorgan and Bank of America to withdraw from assisting CATL’s Hong Kong IPO, citing national security risks.
Buckley, however, argues that the U.S. risks falling behind in clean tech if it sidelines top-tier global players.
“By shunning CATL, the U.S. is rejecting some of the best clean energy technology available today. Collaboration, not isolation, should define the climate race,” he told WafricNews.
The Bigger Picture
CATL’s successful debut underscores a broader reality: while Western governments may escalate trade tensions, global investors are still betting big on green energy leaders—especially those with the scale and speed to meet the world's electrification goals.
With its deep bench of R&D talent, global manufacturing base, and growing influence in Europe and Asia, CATL is positioning itself not just as a battery supplier, but as a cornerstone of the global energy transition.
By WafricNews Desk.
By WafricNews Desk.
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