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CATL aims for $9 billion in financing via share issue - www.electrive.com

Aug 14, 2021 - 12:01 pm

CATL aims for $9 billion in financing via share issue

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The Chinese battery cell manufacturer CATL wants to raise the equivalent of about 9 billion US dollars by issuing shares to finance six projects to increase its production capacity of lithium-ion batteries.

The sum of 58.2 billion yuan is equivalent to about 7.63 billion euros. According to Reuters, this will mainly involve projects in China, but also the battery factory under construction near Erfurt, Germany. However, no details were given.

In China, the money is to be used to build “several battery factories”, specifically in the provinces of Fujian, Zhejiang and Guangdong. Some of these projects, amounting to 130 GWh, have already been announced: the plant in Fujian is to be a factory in the city of Ningde, i.e. at CATL’s headquarters. The plant in Guangdong province is to be built in the city of Zhaoqing, as announced in February, with a production capacity of 25 GWh.

In addition, a plant in Ritsuyang (Jiangsu province) was announced, but Reuters does not mention this province in the current article. In June, CATL completed the first phase of its battery cell plant in the city of Yibin in southwest China’s Sichuan province and put the equipment into operation. The company puts the annual capacity of the completed section at 15 GWh. Expansion work to 30 GWh is already underway.

CATL currently has a market capitalisation of 1.1 trillion yuan, equivalent to about 144 billion euros. The announcement of the share issue was well received by the market: According to Reuters, the share price rose by five per cent.

reuters.com