Shares of Contemporary Amperex Technology Co. Ltd. (CATL), the world’s largest electric vehicle (EV) battery maker, jumped around 13% on Tuesday during its trading debut in Hong Kong. The strong start followed the company’s $4.6 billion initial public offering (IPO), the largest IPO globally so far this year.
CATL sold more than 135 million shares at the top of its price range, 263 Hong Kong dollars ($33.60) per share. When trading began, the stock opened at 296 Hong Kong dollars ($37.80), up 12.5% from the offer price. By midday, shares had gained approximately 13%.
The successful listing suggests that international investors remain interested in leading Chinese manufacturers, despite ongoing trade tensions between the United States and China.
CATL also trades in Shenzhen, a major tech and business hub near Hong Kong. While shares there initially dipped on Tuesday, they later rose slightly, ending up 0.1%.
According to its listing documents, CATL held a 38% share of the global EV battery market in 2024. It supplies major automakers including Tesla, Volkswagen, BMW, Mercedes-Benz, Ford, Toyota, and Honda.
However, the company has faced pressure from the U.S. government. In January, the U.S. Department of Defense added CATL to a list of firms allegedly linked to China’s military. CATL denied any such connection and called the move a “mistake.”
In April, U.S. Congressman John Moolenaar, chair of the House Select Committee on China, urged JPMorgan Chase and Bank of America to withdraw from supporting CATL’s IPO. Both banks chose to remain involved.
In the U.S., Ford Motor Co. is working with CATL by licensing its battery technology. The project has faced opposition from some Republican lawmakers, who are concerned the Chinese company could benefit from U.S. taxpayer subsidies.
While the share sale excluded onshore U.S. investors, many large American institutions joined through offshore accounts.
CATL said it plans to use most of the funds raised to build a factory in Hungary. This plant will bring the company closer to its European customers’ manufacturing operations.
