China’s CATL to raise $9 billion to expand lithium-ion battery production

Chinese global leader of new energy innovative technologies Contemporary Amperex Technology Co.  (CATL) [Shenzhen-300750.SZ] announced it was planning 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 expands battery manufacturing capacity around China and in Germany.

Proceeds from the financing will also be used to build several battery factories in Fujian, Zhejiang and Guangdong provinces in China and to better position the company with capital. The Company also has plans to use the capital to develop battery technologies for energy storage facilities.

CATL is supplying electric vehicle batteries to electric vehicle automakers including Tesla Inc, Volkswagen AG and Geely.

CATL’s shares rose more than 5% at one point on Friday after the private placement announcement. It currently has a market capitalisation of over 1.1 trillion yuan ($169.85 billion).