Tesla Battery Supplier CATL Sees Stock Surge in Hong Kong’s Biggest IPO of 2025

Chinese battery giant Contemporary Amperex Technology Co. Limited (CATL) saw its shares jump sharply on its Hong Kong debut, marking the largest initial public offering (IPO) of the year so far. The world’s leading electric vehicle (EV) battery manufacturer raised nearly HK$35.7 billion (US$4.55 billion) in the listing, with its stock climbing as much as 18% during early trading.

The listing drew significant attention amid ongoing tensions between the United States and China, which have disrupted global trade and impacted the auto industry. CATL, which supplies major automakers including Tesla, Toyota, and Volkswagen, already trades on China’s Shenzhen Stock Exchange with a market value exceeding 1 trillion yuan (US$139 billion).

Despite being named in January by the U.S. Department of Defense as a company with alleged ties to the Chinese military – a claim CATL strongly denies – the firm has continued to attract global investment. It dismissed its inclusion on the U.S. list as an “error.”

Neil Beveridge, head of Asia research at Bernstein, described the stock’s debut as a strong performance, especially given the listing’s scale and market conditions. “This IPO is a critical moment for Hong Kong’s capital markets, and CATL’s early momentum reflects investor confidence in its long-term position,” he said.

Founded in 2011 in the southeastern city of Ningde, CATL has rapidly grown alongside China’s booming EV sector. The company now employs over 100,000 people and operates 13 manufacturing plants globally. It is also expanding its footprint in Europe, with a second factory underway in Hungary following the launch of a facility in Germany in 2023.

In December, CATL partnered with Stellantis—the parent company of Chrysler—to establish a €4 billion (US$4.3 billion) battery plant in Spain, which is expected to be operational by late 2026.

While nearly 70% of CATL’s revenue comes from the domestic Chinese market, its limited exposure to the U.S. means the firm is relatively insulated from the impact of American tariffs and trade restrictions, analysts say.

CATL continues to invest heavily in innovation, operating six research and development hubs worldwide. The company recently unveiled a breakthrough EV battery capable of delivering a 520-kilometre (323-mile) range with just a five-minute charge – hailed as a major leap forward in fast-charging technology.

Tim Buckley, founder of Australian think tank Climate Energy Finance, praised the company’s pace of innovation: “The advances we’re seeing from CATL, particularly in battery performance and charging speed, are truly world-leading.”

Despite U.S. concerns over national security and warnings to major financial institutions like JPMorgan and Bank of America against supporting the Hong Kong IPO, Buckley believes Washington is missing an opportunity.

“They’re shutting out one of the most advanced clean energy technology leaders,” he said. “If the U.S. wants to accelerate the global shift to renewables, collaboration – not exclusion – will be key.”