World’s Largest EV Battery Maker CATL Sees Shares Surge on Hong Kong IPO Debut Despite U.S. Security Concerns

China’s Contemporary Amperex Technology Co Limited (CATL), the world’s largest electric vehicle (EV) battery manufacturer, successfully debuted on the Hong Kong Stock Exchange on May 20, 2025, marking the biggest initial public offering (IPO) so far this year. On its first day of trading, CATL’s shares rose more than 10% at the open, raising nearly HK$35.7 billion (approximately US$4.55 billion).

CATL produces over one-third of all EV batteries worldwide, supplying major automakers including Tesla, Volkswagen, and Toyota. Founded in 2011 and headquartered in Ningde, China, the company has rapidly grown alongside China’s booming EV market. Currently, CATL employs over 100,000 people and operates 13 production plants globally.

The company is already listed on the Shenzhen Stock Exchange, with a market value exceeding 1 trillion yuan (around US$138.7 billion). In recent years, CATL has expanded aggressively overseas, opening a plant in Germany in 2023 and currently constructing a second European factory in Hungary. In December, CATL announced a partnership with Stellantis, the owner of Chrysler, to build a US$4.3 billion EV battery plant in Spain, expected to be operational by the end of 2026.

Innovation is central to CATL’s strategy. With six research and development centers worldwide, it recently unveiled a new battery capable of charging for a 520 km range in just five minutes. CATL is a key supplier of lithium iron phosphate batteries to Tesla’s Shanghai factory.

However, U.S. lawmakers have raised concerns over potential national security risks linked to CATL. In January, the U.S. Department of Defense added CATL to a list of companies alleged to have ties with China’s military, a claim CATL denies, calling it a “mistake.” In April, the Chair of the U.S. House Select Committee on China sent letters to the CEOs of JPMorgan and Bank of America urging them to withdraw from supporting CATL’s Hong Kong listing.

Despite Washington’s skepticism towards Chinese firms, Tim Buckley, founder of the independent Australian think tank Climate Energy Finance, argues that the U.S. should collaborate with Beijing to advance renewable energy technologies. He stated, “The U.S. is rejecting by far the best technology players in the world when it comes to clean tech.”