A huge influx in investment will lead to a massive expansion of lithium-ion battery plants.
Some background: Thanks largely to battery giant Contemporary Amperex Technology Ltd.’s (CATL) new plants, China will be making 70 percent of the world’s electric-vehicle batteries by 2021, according to Bloomberg New Energy Finance (BNEF).
The news: In a public offering on June 11, CATL raised nearly $1 billion to fund ambitious expansion plans—its stock has been shooting up every day since. Shares rose by the maximum allowed in each of the first three days of trading, giving the company a value of more than $13 billion on June 13. That minted at least three new billionaires.
Why it matters: The rapid rise of CATL is arguably the clearest (though certainly not the only) payoff from China’s calculated efforts to bolster its domestic battery and electric-vehicle industries—two of the most promising sectors in clean energy.
Some background: Thanks largely to battery giant Contemporary Amperex Technology Ltd.’s (CATL) new plants, China will be making 70 percent of the world’s electric-vehicle batteries by 2021, according to Bloomberg New Energy Finance (BNEF).
The news: In a public offering on June 11, CATL raised nearly $1 billion to fund ambitious expansion plans—its stock has been shooting up every day since. Shares rose by the maximum allowed in each of the first three days of trading, giving the company a value of more than $13 billion on June 13. That minted at least three new billionaires.
Why it matters: The rapid rise of CATL is arguably the clearest (though certainly not the only) payoff from China’s calculated efforts to bolster its domestic battery and electric-vehicle industries—two of the most promising sectors in clean energy.
—James Temple
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