A Tesla battery supplier just had a huge IPO

The world’s largest EV battery maker just shook the global financing stage with its IPO in Hong Kong. CATL, or Contemporary Amperex Technology Co., Ltd., saw its shares surge 16% on Tuesday, raising $4.6 billion in the world’s largest public offering so far this year.

CATL is already listed on China’s Shenzhen Stock Exchange and has a market valuation surpassing 1 trillion yuan (about $138.7 billion), but its Hong Kong debut is a bold statement about the company’s financial strength and global ambitions.

The company’s decision to dual-list is seen as part of CATL’s larger strategy to tap into international capital and elevate its global reach amid increasing competition from other battery manufacturers such as LG Energy Solution and Panasonic.

The battery maker supplies some of the world’s biggest automakers — including Tesla (TSLA), Volkswagen (VWAGY), Ford (F), Toyota (TM), and Mercedes-Benz (MBGYY) — and accounts for more than one-third of all EV batteries sold worldwide. The company has solidified its role at the heart of the EV revolution, powering everything from electric sedans to trucks and buses.

In the first quarter of 2025, CATL reported a 30% increase in net profit, driven by the continued surge in global demand for electric vehicles and energy storage solutions.

With the demand for EVs exploding globally, CATL is playing a critical role in the transition to a more sustainable automotive industry. But despite its credentials, CATL’s IPO came amid increasing geopolitical tensions.

The company has faced challenges linked to its Chinese roots, including trade barriers from the U.S.-China trade war, auto tariffs, and fears of a slowdown in China’s economy. Tensions escalated to the point where, in January, the U.S. Department of Defense added CATL to a list of companies allegedly tied to the Chinese military — a claim CATL vehemently denies, calling it a “false designation.”

As a result of the tensions, CATL banned U.S. onshore investors from its Hong Kong stock sale.

Meanwhile, last month, CATL reaffirmed its position as the leading battery supplier in the rapidly growing EV market. The company revealed that it’s working on a game-changing battery that promises to be lighter, more affordable, faster to recharge, and more resilient to cold temperatures — all while delivering greater driving range.

In its quest to remain at the forefront of EV innovation, CATL is also expanding its global footprint.

With more than 100,000 employees and 13 production plants worldwide, the company continues to scale operations to meet surging demand for electric vehicles. It also has six research and development centers around the globe.

Recently, CATL also unveiled energy storage systems, meaning the company is targeting not just the automotive industry but also large-scale energy storage solutions for grids, setting it up as a potential major player in the renewable energy market.