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
Tesla-Supplier CATL Unveils Groundbreaking Sodium-Ion Battery
Lithium stocks’ climb in China continues
China salt lake project puts lithium production under spotlight
Aussie lithium miners upbeat over China’s electric vehicle boom
China’s CATL to put $5bn into lithium battery plant, Jakarta says