CATL also has plans to build and expand in Hungary next
Shares of Contemporary Amperex Technology Co. Ltd. (CATL), the world’s largest battery manufacturer, surged more than 16 percent during their trading debut on the Hong Kong Stock Exchange on Tuesday. The strong performance signals growing investor confidence in CATL’s ability to capitalize on the global boom in EVs.
CATL’s shares closed at HK$306.20, well above their initial public offering (IPO) price of HK$263, marking one of the most successful market entries this year. The IPO raised approximately HK$35.7 billion (USD4.6 billion), making it the largest public offering globally in 2025 so far, according to the company’s filing.
Moreover, on mainland China’s Shenzhen exchange, where CATL is also listed, the stock initially opened lower but rebounded to close up 1.15 percent at 263 Chinese yuan. Analysts see the strong Hong Kong debut as a sign of robust international interest in the company.
Neil Beveridge, senior research analyst at Bernstein, told CNBC’s The China Connection, “The strong demand for H-shares [Hong Kong-listed shares] compared to A-shares [mainland-listed] shows just how highly global investors value CATL.” He expects the performance in Hong Kong to eventually lift sentiment on the mainland shares as well.
CATL also plans to invest 90 percent of the proceeds into a new battery manufacturing facility in Hungary. The factory will serve European automakers such as Stellantis. Beveridge emphasized the strategic importance of this move, noting that while China’s EV market is maturing, Europe, with EV penetration at just 20 to 25 percent, still presents major growth opportunities.
On top of that, CATL’s expansion mirrors similar global moves by Chinese EV giants like BYD, even as trade tensions rise. The U.S. and EU have imposed tariffs on Chinese-made EVs, citing unfair competition. Earlier this year, the Pentagon added CATL to a watchlist over alleged links to the Chinese military, allegations the company denies.
Despite these challenges, CATL’s global strategy remains focused on Europe and emerging markets. According to Bill Russo, CEO of Automobility, U.S. regulatory actions may complicate American operations but are unlikely to derail the company’s broader international ambitions.
While CATL reported a 9.7 percent decline in annual revenue for 2024, net profit rose 15 percent, bolstered by strong EV demand. In China alone, EV sales reached 11 million units in 2024, up 40 percent from the previous year, according to Rho Motion. We got all this from CNBC and their full article is linked here. Thank you CNBC for the information and images.
