China’s Contemporary Amperex Technology Co Limited known as CATL is the world’s largest electric vehicle battery maker and a key supplier to major automakers such as Tesla Volkswagen and Toyota. The company made a spectacular debut on the Hong Kong stock market with shares climbing as much as 18 percent following the biggest initial public offering this year raising nearly 35.7 billion Hong Kong dollars equivalent to 4.55 billion US dollars.

CATL already trades on the Shenzhen Stock Exchange where it boasts a valuation of over 1 trillion yuan approximately 138.7 billion US dollars. Despite the ongoing US China tariff war which has disrupted global trade and impacted automakers the company remains robust largely because it generates nearly 70 percent of its revenue from the Chinese market. Its limited sales exposure to the US means it is relatively insulated from the effects of trade restrictions.

Founded in 2011 in the eastern Chinese city of Ningde CATL has grown rapidly alongside China’s booming electric vehicle industry. Today it employs over 100000 people operating 13 production plants worldwide. Its global expansion includes the construction of a second European factory in Hungary following the opening of a plant in Germany in early 2023. A major $4.3 billion EV battery plant in Spain is also planned in partnership with Stellantis the owner of Chrysler expected to be operational by the end of next year.

CATL invests heavily in research and development with six global R&D centres driving innovations particularly in fast charging technology. Recently the company unveiled a battery that can be charged to provide 323 miles or 520 kilometres of range in just five minutes marking a significant breakthrough in EV battery performance.

The firm supplies lithium iron phosphate batteries to Tesla’s factory in Shanghai making it an important partner in the global EV supply chain. However the company has faced scrutiny from US lawmakers over potential national security risks linked to its ties with China’s military which CATL denies calling the allegations a mistake.

Despite political tensions experts suggest that cooperation between the US and China in clean technology could accelerate global progress on renewable energy. Tim Buckley founder of Climate Energy Finance stated that the US is missing opportunities by rejecting leading Chinese clean tech companies such as CATL which are pioneering advancements in battery technology.

CATL’s successful Hong Kong IPO highlights its growing influence in the global electric vehicle battery market and its commitment to innovation and international expansion despite geopolitical challenges. The company remains a critical player in the transition to sustainable transport and clean energy worldwide.

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