CATL Aims to Raise Approximately 10.9 Billion Yuan for Establishing a Global Supply Chain

Contemporary Amperex Technology Co., Limited (CATL), the world's leading electric vehicle battery manufacturer, is currently engaged in discussions with overseas sovereign wealth funds and private offices of ultra-wealthy individuals, with plans to secure a fund of $1.5 billion (approximately 10.9 billion yuan) to establish its global supply chain.

According to reliable sources, this offshore fund will aid CATL in providing financial support for the corporate ecosystem necessary for expanding its production in Europe and other overseas markets. The sources disclosed that CATL intends to invest alongside global investors, with CATL's contribution accounting for approximately 15% of the fund. The primary objective of the fund is to provide funding for CATL's suppliers in Europe. CATL's expansion plans in Europe align with the EU's intention to impose tariffs on electric vehicles imported from China. Analysts believe that this move will encourage more Chinese automakers to establish local factories for vehicle production.

It is understood that CATL has already established the Thuringia battery factory in Germany, with an annual production capacity of 14 GWh. The company is also constructing a new battery production base in Hungary, which costs 7.3 billion euros (approximately 57.6 billion yuan). Additionally, CATL plans to jointly build a battery factory in Europe with Stellantis, one of the top four global automakers, with Spain as the potential location for the facility. Overseas markets have become a significant driver of CATL's performance growth. Last year, its overseas revenue reached 130.9 billion yuan, increasing by 70% year-on-year, while the growth rate of its domestic business was only 7% during the same period. In 2023, CATL's overseas business accounted for nearly 33% of its total revenue, an increase of 10 percentage points from the previous year.

CATL's power battery segment contributed 71% of its revenue in 2023, while the energy storage battery segment accounted for nearly 15%. According to data from Korean consulting company SNE Research, CATL held a 37% share in the global power battery market last year, and its market share has risen to 37.5% in the first five months of this year.

According to SNE's statistics, from January to April this year, excluding the Chinese market, CATL's market share in global power battery installations also reached 27.4%, surpassing its long-time rival LG Energy Solution and ranking first globally. Since the beginning of this year, Zeng Yuqun, Chairman of CATL, has publicly mentioned the technology licensing and cooperation model multiple times, considering it an important approach to address geopolitical challenges. He revealed that apart from Ford Motor Company, CATL will also provide similar service models to many automakers and even battery manufacturers in Europe and the United States, helping them quickly establish battery production bases and become world-class factories. To achieve this goal, a strong overseas supply chain is also needed as support.

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