The world’s largest electric vehicle (EV) battery maker is going all-in on international expansion and could shake up the EV market in the process with its battery-swapping tech rollout.
China’s Contemporary Amperex Technology Co. Ltd.
(CATL) is a key player in the global transition to more sustainable transport, with a market share in the EV sector of roughly 38%. CATL’s clients include global players like Tesla
, Volkswagen
and BMW
, with the firm boasting technology far superior to that of Western competitors.
Despite its outsized impact on the EV industry, the company had mostly flown under the radar until May this year, when it launched the world’s largest initial public offering (IPO) of 2025 to date in Hong Kong.
The IPO raised 41 billion Hong Kong dollars ($5.2 billion), after CATL stocks surged and an over-allotment option was fully exercised.
Here is what CATL has in the works following its IPO.
Global expansion
Ahead of its public offering, CATL said 90% of the funds raised by going public would be put toward its expansion into Europe, particularly its under-construction factory in Hungary.
The company’s 7.6-billion-euro ($8.2 billion) investment into the Debrecen battery plant was first announced in August 2022 and is expected to begin production this year.
The battery maker has already established a wholly owned manufacturing base in Germany, which first opened in 2023. It has also announced plans to build a battery plant in Spain through a joint venture with Stellantis
Bill Russo, founder and CEO of investment advisory firm Automobility, said CATL’s expansion plans appear designed to sustain its global leadership and scale, citing limited growth momentum in its domestic market and rising competition.
“CATL’s early mover advantage helps lock in long-term contracts, and pricing power is stronger in Europe, supporting higher margins compared to China,” Russo told CNBC by email.
“The Hungary plant is a strategic gateway into the EU market,” he added. “Hungary offers proximity to major OEMs, government incentives, and lower labor costs — making it an attractive hub for Chinese EV and battery players seeking a foothold in Europe,” he added.
CATL’s global investments follow a trend of more Chinese EV companies, including auto giant BYD, shifting to Europe amid aggressive competition and price wars in the domestic market.
Speaking at the World Economic Forum in Tianjin, China, on Thursday, Ni Jun, CATL’s chief manufacturing officer, said the brutal discount war would not end without intervention from Beijing.
He added that, if a big player continues to cut prices, it could lead to other competitors being driven out of the market and create a monopoly. While CATL’s Jun did not name any companies, CATL’s main competitor BYD announced price cuts in late May.
Tight margins and overcapacity in China have been a driving force in CATL’s Europe push, said Tu Le, founder and managing director of Sino Auto Insights, adding that the company is already supplying “virtually every” EV maker in China, limiting domestic growth opportunities.
But not everything in Europe has been easy. The bloc placed punitive tariffs on made-in-China EVs last year, following an even more severe crackdown in the U.S.