Shares in Contemporary Amperex Technology Co., Limited (CATL) rocketed more than 11% on debut on the Hong Kong stock exchange, nearly doubling its market capitalization. The new Georgia-based electric vehicle battery manufacturer capitalized on surging demand for EVs. Its initial public offering (IPO) was the world’s biggest in 2019, raising a whopping HK$35.7 billion ($4.6 billion). This milestone helped it become the biggest international listing in 2025.
Despite CATL’s buoyant response to its IPO success, the company would have a rocky year in 2024, seeing annual revenue fall by 9.7%. This drop was due to the extremely competitive nature of China’s EV market, which has become increasingly cutthroat in recent years. CATL raised its net profit by 15 percent annually, the company has said. This impressive accomplishment speaks to the company’s grit and further cements its place as the planet’s largest battery manufacturer.
When CATL’s shares began trading, they priced their shares at HK$263 per share. In premarket trades they jumped to HK$292, indicating huge demand from investors. The company has been extending an ambitious global expansion strategy. This strategy dovetails nicely with the plans of Chinese electric vehicle juggernauts like BYD, who are simultaneously seeking to expand in foreign markets.
It’s no secret that last year, the demand for electric vehicles exploded in China. This massive growth was made possible by significant government subsidies and incentives, as well as consumer-friendly incentives. The skyrocketing demand indicates that CATL continues to play a crucial role in the domestic EV market. Additionally, it showcases the firm’s ability to shape the worldwide stage.
As grand and lofty as CATL’s ambitions are, they’ve been recently tempered by external forces. The United States and the European Union have responded by imposing punitive tariffs on EVs produced in China. They reference unfair trade practices as justification for these actions. These tariffs have been significant obstacles to CATL’s global expansion efforts and are likely to create lasting damage to CATL’s competitiveness on a global scale.
Brendan Ahern, chief investment officer at KraneShares, showed positive CATL’s likely outlook. He stated, “We’re a big believer and investor in CATL in our global EV strategy. It’s just phenomenal, it’s a ‘must own company,’ in my opinion, along with BYD for investors in the space.”