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China’s CATL Looks to Raise $9bn to Expand Lithium Battery Production

Battery giant CATL wants to fund six projects to boost its output of lithium-ion batteries, including factories in three provinces in China


The head office of Chinese battery maker Contemporary Amperex Tech (CATL) is seen in Ningde, Fujian province in this file photo from 2018 by Reuters.

 

Chinese battery giant CATL said it was planning a private share placement to raise up to 58.2 billion yuan ($8.98 billion) to fund six projects aimed at boosting its production capacity of lithium-ion batteries.

The massive fundraising comes as the Ningdo-based firm – formally known as Contemporary Amperex Technology Co Ltd – expands battery manufacturing capacity around China and in Germany.

It will also be used to build several battery factories in Fujian, Zhejiang and Guangdong provinces in China and to boost capital, CATL said in a statement late on Thursday.

It will also use the capital to develop battery technologies for energy storage facilities.

As the global auto industry accelerates transformation towards electrification, CATL is supplying electric vehicle batteries to a swathe of automakers such as Tesla Inc, Volkswagen AG and Geely.

It is competing with Japan’s Panasonic and South Korean LG Chem.

CATL’s shares rose more than 5 per cent at one point on Friday after the private placement announcement. It currently has a market capitalisation of over 1.1 trillion yuan (close to $170 billion).

• Reuters and Jim Pollard

 

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Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years and has a family in Bangkok.

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