China's CATL looks to raise $9 billion to expand lithium-ion battery production
Chinese battery giant CATL said it was planning a private share placement 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 - formally Contemporary Amperex Technology Co Ltd - expands battery manufacturing capacity around China and in Germany.
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It will also be used to build several battery factories in Fujian, Zhejiang and Guangdong provinces in China and to boost capital, CATL said in a statement late on Thursday. In addition, it will use the capital to develop battery technologies for energy storage facilities.
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As the global auto industry accelerates transformation towards electrification, CATL is supplying electric vehicle batteries to a swathe of automakers including Tesla Inc, Volkswagen AG and Geely. It is competing with Japan's Panasonic and South Korean LG Chem.
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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).
