Tesla Battery Supplier CATL to Raise $9 Billion to Expand Production

After unveiling a breakthrough new battery for electric vehicles (EVs) last month, one China-based company is set to fundraise for a new round of battery production.

China’s Contemporary Amperex Technology (CATL) said on Friday that it is planning a private share placement to raise up to 58.2 billion yuan ($9.98 billion USD), according to Reuters.

The funding is expected to help the company support six separate projects, all focused on boosting lithium-ion EV battery production.

This round of fundraising also comes as the company looks to grow its battery production capacity around China and Germany, with plans to use the funding to build new facilities in Fujian, Zhejiang and Guangdong provinces in China.

In addition, the battery maker will produce EV batteries for a number of automakers, including Tesla, Volkswagen and Geely, among others. CATL’s competitors include Panasonic and LG Chem, though CATL currently holds the title of the world’s largest battery maker.

Last month, CATL unveiled a more affordable sodium-ion EV battery, which the company will release alongside a partially integrated lithium battery pack makeup.

CATL’s shares rose over 5 percent at one point on Friday, following the announcement of the company’s private placement, with a market capitalization of over 1.1 trillion yuan ($169.85 billion USD).