Chinese lithium battery giant Contemporary Amperex Technology Co Ltd (CATL) is planning a CNY13.12 billion ($1.98bn) initial public offering to expand its automotive battery business.
CATL said in a Shenzhen Stock Exchange announcement the move will ensure the firm keeps pace with the rapidly-expanding electric vehicle and energy storage markets.
The Chinese player plans to issue 217 million new shares to build two new battery facilities in the country.
CATL said CNY8.92bn raised from the fundraising would go to building its Huxi automotive lithium-ion battery production site over the next three years. The remainder would be spent on setting up a battery R&D project.
Huxi, to be based in the Dongqiao economic development zone, in Fujian Province, is expected to boost CATL’s battery manufacturing capacity by 24GWh.
Meanwhile, CATL said its sales of automotive battery systems in 2016 and the first half of 2017 amounted to 6.8GWh and 3.51GWh respectively. Big names in the automotive industry, such as SAIC, BAIC, Geely, BMW and Volkswagen are on the company’s client list.
CATL, which retrieves EV batteries for energy storage, has acquired a 69% stake in Chinese Li-ion battery recycler Guangdong Brunp Recycling Technology— which recently invested CNY1.2bn to build a 100,000-ton used battery plant in Changsha, Hunan Province.
In July, Swiss mining company Glencore reportedly signed a deal to supply up to 20,000 tonnes of cobalt products to CATL, who would in turn sell batteries for Volkswagen’s electric vehicles.
CATL is also reportedly behind plans to build a battery manufacturing plant in Europe to cater for the EV industry. However, no official announcement has been made.