Contemporary Amperex Technology (CATL), the world’s largest manufacturer of batteries for electric vehicles, announces the establishment of a fund of up to 1.5 billion dollars (approximately 1.378 billion euros) aimed at strengthening its global supply chain.
This initiative seeks to ensure the availability of crucial raw materials for its operations.
This move is a response to the growing demand for batteries and seeks to maintain the company’s competitiveness in an ever-evolving market.
According to a spokesperson for CATL, the company has already begun discussions with several sovereign funds and automobile manufacturers, including Mercedes-Benz, to invite their participation in this financial initiative.
“The aim of the fund is to facilitate the global energy transition with the support of like-minded partners from around the world,” the spokesperson states, emphasising the importance of forging strategic alliances in this new phase of expansion.
The fund will be managed by Lochpine Capital, a wealth management firm based in Hong Kong, which was established in August 2023 under the name of CATL Capital before rebranding.
Although few details have been disclosed regarding potential investors, it has been confirmed that discussions are ongoing with several entities to secure their involvement.
CATL has made significant commitments in Europe, including the construction of a battery factory in Hungary, under an agreement valued at over 7.34 billion euros with Mercedes-Benz.
Additionally, the firm has formed a partnership with Stellantis to establish a manufacturing plant on the continent, thereby consolidating its presence in the European market.
In the United States, CATL has also secured a licensing agreement with Ford, allowing it to supply batteries for the next generation of electric vehicles from the iconic automotive brand.
As of today, CATL maintains its leading position in the global battery market, with a market share of up to 37.5 per cent recorded in May.
In China, its dominance is even more pronounced, capturing nearly half of the market.
This robust performance underscores the company’s importance in the transition towards electric mobility and its ability to adapt to the demands of the global marketplace.
With the establishment of this new fund, CATL not only seeks to secure its supply chain but also aims to consolidate its role as a key player in the evolution of the battery industry and electric mobility on a global scale.
