Shanghai, China
Chinese
battery giant CATL said it was planning a private share placement to
raise up to $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.
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.
As
the global auto industry accelerates transformation towards electrification, 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.
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 $169.85 billion.
Source: ET Auto.com
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