World’s largest EV battery maker CATL to raise at least $4bn

Prime Highlights:

Chinese global industry pacesetter in electric vehicle battery production CATL is pursuing a secondary listing in Hong Kong to raise at least $4 billion, the city’s biggest equity deal so far in 2025.
The money will be used primarily to boost CATL’s factory capacity, such as a Hungarian mega battery factory.

Key Facts:

CATL sale includes 117.9 million shares at a maximum of HK$263 per share, raising up to over $5 billion on exercise of over-allotment options.
Cornerstone investors Sinopec and Kuwait Investment Authority have already committed $2.62 billion for listing.
US worries about its relations with China’s military have not discouraged CATL from going global as it enters into deals with companies like Tesla and Ford.

Key Background:

Modern Amperex Technology Co. CATL is a global leader in electric vehicle (EV) battery manufacturing and wants to list secondary in Hong Kong to finance future expansion. The group, which is already listed in Shenzhen, is raising at least $4 billion in the Hong Kong issue, the largest equity transaction in the city in 2025. The amount may exceed $5 billion if a greenshoe option is exercised, showing high demand from investors.

CATL has already received significant backing from the likes of Sinopec, the Kuwait Investment Authority, and Hillhouse Capital. The lion’s share of the money raised, representing 90%, will be utilized to build a state-of-the-art battery-making factory in Hungary. The expansion forms part of CATL’s long-term strategy to keep pace with burgeoning global demand for EVs and energy storage solutions, particularly in Europe.

The company’s growth strategy also entails a strong market presence within the United States, to which it has licensing agreements with Tesla and Ford. However, CATL’s growth is not controversy-free. The U.S. government has investigated CATL on suspicion of its affiliations with China’s military, to which CATL has denied any such claims. CATL is reinforcing its role as a dominant industry participant in the world EV battery supply chain amidst these challenges.

With CATL strengthening its presence across the world through manufacturing, the company will leverage the increasing EV market that will be at the core of the world’s transition to cleaner energy.