China’s largest EV battery maker, CATL, made a powerful debut on the Hong Kong Stock Exchange. Its shares rose by as much as 18% on the first day. As a result, the listing became the biggest IPO of 2025 so far.

The company raised nearly HK$35.7 billion ($4.55 billion or £3.4 billion). Investors welcomed the move. According to Neil Beveridge of Bernstein, "The performance of the stock was very good in what is going to be a key IPO for Hong Kong given the size of the listing."

Global Leader in Battery Supply

CATL supplies more than one-third of the world’s electric vehicle batteries. It works with top carmakers like Tesla, Toyota, and Volkswagen.

Currently, CATL also trades on China’s Shenzhen Stock Exchange. Its market value there is over 1 trillion yuan ($138.7 billion or £104.3 billion).

Although the company faces trade tensions, it depends heavily on the Chinese market. In fact, around 70% of its revenue comes from China. Therefore, it remains mostly unaffected by US trade policies.

Beveridge told the BBC, "The direct implications of what we are seeing with tariffs will only have a limited effect on the company."

US Defense Concerns Stir Controversy

In January, the US Department of Defense added CATL to a list of companies tied to China’s military. However, CATL denied any such connection. The company said its inclusion on the list was a "mistake."

Later in April, the head of the US House Select Committee on China urged JPMorgan and Bank of America to stop supporting CATL’s Hong Kong listing.

Rapid Global Expansion

Despite political concerns, CATL continues to expand. The firm employs more than 100,000 workers globally. It operates 13 production plants worldwide.

Last year, CATL opened a battery factory in Germany. Now, it is building another one in Hungary. Furthermore, in December, CATL announced a $4.3 billion joint project with Stellantis. The new battery plant in Spain will begin operations by the end of next year.

Innovation at the Core

Moreover, CATL focuses strongly on innovation. It runs six research and development centers across different countries.

Tim Buckley of Climate Energy Finance praised the company’s progress. "The innovations that we're seeing from CATL are unbelievable, particularly in the fast charging area," he said.

Recently, CATL introduced a battery that can deliver a 323-mile (520 km) range with just five minutes of charging.

Major Partner for Tesla

In addition, CATL supplies lithium iron phosphate batteries to Tesla’s Shanghai factory. Yet, US lawmakers remain concerned about national security risks linked to the Chinese company.

Still, Buckley argued that the US should collaborate with China on clean energy. "They're rejecting by far the best technology players in the world when it comes to clean tech," he told the BBC.