BUSINESS

CATL Launches Hong Kong Secondary Listing to Fund European Expansion

Published: Feb. 12, 2025 4:05 a.m. GMT+8

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Signage for Contemporary Amperex Technology Co. during a launch event for the company's Bedrock chassis for electric vehicles in Shanghai, China, on Tuesday, Dec. 24, 2024. Photo: Bloomberg

Chinese battery giant Contemporary Amperex Technology Co. Ltd. (CATL) has launched its secondary listing in Hong Kong, aiming to raise funds primarily for the construction of its Hungary factory, according to its prospectus disclosed by the Hong Kong Stock Exchange Tuesday.

The move could become one of Hong Kong’s largest listings in recent years, with Bloomberg reporting a potential fundraising target exceeding $5 billion.

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CATL is launching a secondary listing in Hong Kong to raise funds for its Hungary factory, with a potential fundraising target exceeding $5 billion.
The company, a major EV battery supplier with a 37.9% global market share in 2024, reported a 19.3% rise in net profit for the first nine months.
CATL's Hungary project, worth €7.34 billion, aims for 100 GWh battery capacity, with construction underway, funded by proceeds from the Hong Kong listing.

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Who’s Who

Contemporary Amperex Technology Co. Ltd. (CATL): Contemporary Amperex Technology Co. Ltd. (CATL) is the world’s largest EV battery manufacturer, holding a 37.9% global market share. CATL launched a secondary listing in Hong Kong to fund phases of its €7.34 billion Hungary factory project. In 2024, it reported a revenue drop of 12% but a net profit rise of 19.3%. CATL operates 13 production bases globally and supplies batteries to top EV makers, including BMW, Mercedes-Benz, and Volkswagen.

Amperex Technology Limited (ATL): Amperex Technology Limited (ATL) is the company from which CATL was originally spun off. CATL was founded in 2011 by Zeng Yuqun and other ATL executives to focus on developing batteries for electric vehicles, leveraging China's push for new energy vehicles.

BYD Co. Ltd: BYD Co. Ltd. is a competitor to CATL in the EV battery industry, holding approximately 18% global market share as of 2024, nearly 20 percentage points behind CATL's 37.9%.

BMW: BMW is one of the top global electric vehicle makers that utilizes batteries produced by CATL. The company's batteries power nine of the world's top 10 EV manufacturers, including BMW, as part of CATL's dominance in the EV battery industry.

Mercedes-Benz: Mercedes-Benz is one of the top global EV makers powered by CATL’s batteries. CATL, the largest EV battery manufacturer with a 37.9% global market share in 2024, supplies batteries to Mercedes-Benz along with other leading automakers.

Volkswagen: Volkswagen is one of the world's top EV makers powered by CATL batteries. CATL operates 13 production bases, and its batteries supply leading automakers, including Volkswagen, highlighting its significance as a key supplier in the global EV industry.

Ford: According to the article, Ford is one of the world's top 10 EV makers powered by CATL's batteries. It highlights CATL's prominent role in supplying leading automakers, demonstrating Ford's reliance on CATL's EV battery technology for its electric vehicles.

Toyota: According to the article, CATL supplies batteries to nine of the world’s top 10 EV makers, including Toyota. This positions CATL as a key battery supplier to Toyota, reflecting the company's prominence in the EV battery market.

Hyundai: Hyundai is one of the major automakers powered by CATL's batteries. CATL supplies its batteries to nine of the world's top 10 EV manufacturers, including Hyundai, alongside others like BMW, Mercedes-Benz, and Volkswagen.

Volvo: According to the article, CATL supplies batteries to nine of the world’s top 10 EV makers, including Volvo. This indicates that Volvo uses CATL's batteries in its electric vehicles, reflecting CATL’s prominent position as a major battery supplier in the global automotive industry.

Nio: Nio is one of the leading Chinese EV brands powered by CATL's batteries. CATL, as the world's largest EV battery manufacturer, supplies its products to nine of the world's top 10 EV makers, including Nio. This partnership highlights CATL's dominant position in the battery industry and its key role in powering major electric vehicle manufacturers globally.

Li Auto: Li Auto is one of the leading Chinese brands whose electric vehicles (EVs) are powered by batteries from Contemporary Amperex Technology Co. Ltd. (CATL).

Xiaomi: Xiaomi is one of the leading Chinese brands whose electric vehicles are powered by CATL's batteries. CATL supplies batteries to nine of the world’s top 10 EV makers, including prominent global and Chinese brands like Nio and Li Auto, alongside traditional automotive giants such as BMW, Mercedes-Benz, and Ford.

BofA Securities Inc.: BofA Securities Inc. is one of the joint sponsors for CATL's secondary listing in Hong Kong. It is part of the group of financial institutions supporting CATL's efforts to raise funds for its Hungary plant and other corporate purposes. BofA Securities Inc. is a well-known investment banking division of Bank of America, providing services such as mergers and acquisitions, risk management, and capital raising.

China International Capital Corp. Ltd.: China International Capital Corp. Ltd. (CICC) is one of the joint sponsors for CATL's secondary listing in Hong Kong. CICC is a prominent Chinese investment bank and financial services firm that provides comprehensive financial services including investment banking, equities, and wealth management.

CSC Financial Co. Ltd.: CSC Financial Co. Ltd. is listed as one of the joint sponsors for CATL's secondary listing in Hong Kong. These sponsors play a crucial role in facilitating the listing process, indicating the company's role in investment banking and financial services.

JPMorgan Chase and Co.: JPMorgan Chase and Co. is one of the joint sponsors for CATL's secondary listing in Hong Kong, which aims to raise funds primarily for its Hungary factory. This listing could become one of Hong Kong’s largest in recent years, with a potential fundraising target exceeding $5 billion.

Goldman Sachs Group Inc.: Goldman Sachs Group Inc. is one of the joint sponsors of CATL’s secondary listing in Hong Kong. They are participating alongside other financial institutions like BofA Securities Inc., JPMorgan Chase and Co., and UBS AG to help CATL raise funds for their Hungary plant and other corporate needs. This listing aims to raise over $5 billion, potentially becoming one of Hong Kong's largest in recent years.

Morgan Stanley & Co.: Morgan Stanley & Co. is listed as one of the joint sponsors for CATL's secondary listing in Hong Kong. The listing aims to raise funds for the company's Hungary factory project and other corporate purposes.

UBS AG: UBS AG is named as one of the joint sponsors of CATL's secondary listing in Hong Kong. The listing aims to raise funds for the Hungary factory and other corporate needs. UBS AG, along with other financial institutions like JPMorgan Chase and Goldman Sachs, plays a role in facilitating this significant fundraising effort, potentially exceeding $5 billion.

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What Happened When

December 2021：: CATL's company valuation peaked at 1.6 trillion yuan.

August 2022：: CATL announced the 7.34 billion-euro Hungary project targeting 100 GWh of battery production capacity in Debrecen.

2022：: CATL faced declining capacity utilization of 83.4%.

End of 2023：: CATL held a 40% market share in energy storage batteries.

2024：: CATL dominated the EV battery industry with a 37.9% global market share, reported a revenue of 259 billion yuan in the first nine months with a net profit rise of 19.3% to 38.8 billion yuan, and EV battery gross margin rose to 24.3%. Energy storage battery margin climbed to 28.4%. The capacity utilization dropped to 65.3% in the first half.

End of 2024：: CATL invested 700 million euro in the construction of the Hungary factory.

As of February 11, 2025：: CATL launched its secondary listing in Hong Kong to raise funds, primarily for its Hungary factory. Shenzhen-listed CATL's stock closed at 251.8 yuan, with a market capitalization of 1.1 trillion yuan.

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