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Shares of Chinese battery giant Contemporary Amperex Technology Co. Limited (CATL) surged by more than 18% on their debut on the Hong Kong Stock Exchange, in the largest initial public offering (IPO) of 2025.
The electric vehicle (EV) battery producer saw its stock reach HK$311.40 ($39.92) during morning trading, up from its listing price of HK$263.00.
The upbeat market response came despite the company reporting a 9.7% drop in annual revenue for 2024. The decline, attributed to fierce domestic competition in China's EV market, has not dampened investor optimism, as CATL still managed to boost its net profit by 15% year-over-year.
Analysts interpret this as a sign of operational efficiency and continued confidence in the firm’s global trajectory.
CATL currently supplies over one-third of the world’s electric vehicle batteries, working with major global automakers such as Tesla, Mercedes-Benz, BMW, and Volkswagen.
The company’s rising prominence coincides with a broader international push by Chinese EV manufacturers, including rivals like BYD, to capture market share beyond China.
As part of this strategy, CATL disclosed in its Hong Kong filing that 90% of the capital raised from the IPO will fund the construction of its upcoming plant in Hungary.
The facility aims to serve key European clients, notably BMW, Stellantis, and Volkswagen.
The move reflects a broader pivot toward the European market at a time when Chinese EV firms are facing growing resistance in both the U.S. and the EU.
The timing of CATL’s expansion comes amid rising trade tensions, particularly with the United States and the European Union, which last year imposed additional tariffs on Chinese-made EVs, alleging unfair trade practices.
Earlier this year, the U.S. Department of Defense added CATL to a watchlist over its suspected links to China’s military—accusations the company has firmly denied.
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