The world’s largest electric vehicle (EV) battery maker has made its debut on the Hong Kong Stock Exchange, in the biggest initial public offering (IPO) so far this year.
China’s Contemporary Amperex Technology Co Limited (CATL) produces more than a third of all EV batteries sold worldwide and supplies major carmakers including Tesla, Volkswagen and Toyota.
The company raised almost HK$35.7bn ( $4.55bn, £3.4bn) from the listing. Its shares jumped by more than 10% at the market open.
In January, the US Department of Defense added the battery maker to a list of businesses it says works with China’s military. CATL denies this, claiming its inclusion on the list was a “mistake”.
The company is already listed on China’s Shenzhen Stock Exchange, where it has a valuation of more than 1tn yuan ($138.7bn, £104.3bn).
Founded in 2011 in the eastern Chinese city of Ningde, it enjoyed rapid growth thanks to the boom in the country’s EV industry.
The battery giant employs over 100,000 people and has 13 production plants around the world.
CATL is currently building its second European factory in Hungary, after opening a plant in Germany in early 2023.
In December, the firm announced a tie-up with Chrysler-owner Stellantis to build a $4.3bn (£3.2bn) EV battery plant in Spain. The facility is set to be in operation by the end of next year.
The firm invests heavily in new technology, with six research and development centres around the world.
“The innovations that we’re seeing from CATL are unbelievable, particularly in the fast charging area”, said Tim Buckley founder of the independent Australian think tank Climate Energy Finance.
Last month, the company unveiled a new battery that it said can be charged for 323 miles (520km) in just five minutes.
CATL is a major supplier to Elon Musk’s Tesla, providing lithium iron phosphate batteries for the EV makers Shanghai factory.
But US lawmakers have expressed concerns about potential national security risks surrounding the Chinese company.
In April, the chair of the House Select Committee on China wrote letters to the chief executives of JPMorgan and Bank of America, asking them to withdraw from working on CATL’s Hong Kong listing.
Despite scepticism about Chinese firms from Washington, Mr Buckley says the US should be looking to work with Beijing on the advancement of renewable energy.
“They’re rejecting by far the best technology players in the world when it comes to clean tech”, he told the BBC.
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