Chinese Electric Vehicle Battery Leader CATL Sees Shares Surge in Major Hong Kong IPO Despite Trade Tensions
Shares of Contemporary Amperex Technology Co. Limited (CATL), the world’s largest electric vehicle (EV) battery manufacturer, rose sharply on their first day of trading in Hong Kong, marking the biggest initial public offering (IPO) so far in 2025.
The stock climbed as much as 18%, reflecting strong investor interest despite ongoing geopolitical tensions between China and the United States.
CATL’s shares opened at 296 Hong Kong dollars (approximately $37.80), significantly above the IPO price of 263 Hong Kong dollars ($33.60). During the trading day, prices peaked at 311 Hong Kong dollars, according to market data. The listing raised about $4.6 billion, reinforcing the company’s position as a major player in the global EV battery market.
This secondary Hong Kong listing follows CATL’s initial public offering in Shenzhen in 2022, where it raised $6.7 billion. The move aims to enhance the company’s access to international capital and support its global expansion strategy. With over 30% of its revenue generated from overseas markets last year, CATL is steadily increasing its footprint beyond China, including ongoing projects in Europe and Southeast Asia.
CATL’s founder and chairman, Robin Zeng, emphasized the company’s vision during the listing ceremony, stating that CATL aims to be more than a battery component maker by focusing on system-level solutions and zero-carbon technology.
Despite challenges linked to US-China trade relations, including CATL’s inclusion on a Pentagon blacklist alleging military ties—which the company denies—CATL’s business performance appears resilient. Major US investment banks like JPMorgan and Bank of America remained involved in underwriting the listing despite political pressure to withdraw.
The company supplies batteries to prominent automakers such as Volkswagen, BMW, Stellantis, and Tesla. Last year, its batteries powered approximately one in three electric vehicles worldwide, underscoring CATL’s market dominance with a 38% global share according to market research firm SNE Research.
CATL continues to invest heavily in technology innovation, recently unveiling a fast-charging battery capable of delivering a 320-mile range after just five minutes of charging, surpassing rival offerings. It operates 13 factories globally, including facilities in China, Germany, Hungary, and plans for new ventures in Spain and Indonesia.
While tariffs and trade policies remain a source of uncertainty, CATL’s exposure to direct exports to the US is limited, somewhat insulating it from the full impact of trade restrictions. The company acknowledges the evolving nature of tariff policies and the potential risks involved but remains focused on expanding its international business.
CNN, BBC, and the New York Times, and Market Watch contributed to this report.
