Contemporary Amperex Technology Co. Ltd. (CATL), a leading Chinese electric-vehicle (EV) battery manufacturer, saw its shares surge by 13% after its debut on the Hong Kong Stock Exchange on May 20, 2025.

The company raised HK$35.7 billion (US$4.6 billion), making it the largest initial public offering (IPO) globally in 2025.

Shares opened at HK$296 (US$37.85), surpassing the listing price of HK$263 (US$33.66) due to high demand. This allowed CATL to set the stock price at the top of its marketed range.

The IPO proceeds could rise to US$5.3 billion if the over-allotment option is applied. This listing significantly boosted Hong Kong’s IPO proceeds for the year, effectively doubling the amount raised up to this point.

CATL holds a 38% market share in EV batteries and supplies major automakers, including Tesla, Volkswagen, Ford, and Mercedes-Benz. The IPO occurs amid ongoing geopolitical tensions and a Pentagon blacklist.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ CATL’s global dominance reflects China’s strategic industrial planning

CATL’s meteoric rise showcases how targeted industrial policy can create global leaders in emerging technologies.

From its founding in 2011, CATL quickly captured nearly 40% of the global EV battery market, installing batteries in one-third of all electric vehicles worldwide 1.

The company’s success was accelerated by China’s massive $60 billion investment in the EV industry since 2009, creating an ecosystem where CATL could thrive with high localization rates for materials (88%) and equipment (86%) 23.

This support allowed CATL to scale rapidly, growing from 6.8 GWh capacity in 2016 to installing 339.3 GWh of batteries in 2024 alone—a 31.7% year-over-year increase 34.

The company’s strategic allocation of resources, including dedicating 11% of revenue to R&D in 2017, has maintained its technological edge against established competitors like LG Energy Solution and Panasonic 2.

CATL’s journey from a consumer electronics battery maker to controlling the EV battery supply chain illustrates how China’s industrial strategy effectively identified and supported a critical technology sector before Western competitors could establish dominance.

2️⃣ Geopolitical tensions reshape battery supply chains but fail to deter investor confidence

Despite being blacklisted by the Pentagon, CATL’s successful US$4.6 billion Hong Kong listing demonstrates that investors remain confident in the company’s fundamental business strength.