China’s Contemporary Amperex Technology (CATL), the world’s largest electric vehicle battery manufacturer, is in discussions with overseas sovereign wealth funds and private offices of wealthy individuals to raise a $1.5 billion fund. The fund aims to support CATL’s expansion of its global supply chain, particularly in Europe and other international markets where it supplies batteries to major automakers like Tesla, Volkswagen and Ford.
Due to China’s strict overseas investment regulations, CATL faces challenges in making significant international investments despite holding substantial cash reserves. The proposed fund, with CATL contributing about 15%, would primarily target companies capable of supplying CATL’s operations in Europe, addressing current supply shortages and aiming for profitable returns.
Hong Kong-based Lochpine Capital is slated to manage the $1.5 billion fund, which CATL has approached potential investors such as Mercedes-Benz and other automaker families to participate in. The fund seeks to attract investments from sovereign wealth funds, family offices, oil and gas firms, and European manufacturers to bolster CATL’s global expansion amid geopolitical tensions affecting its North American growth strategy.
CATL emphasized that the fund aims to support the global energy transition and is designed to attract capital predominantly from international investors, positioning it as a market-driven solution to its supply chain challenges and strategic growth initiatives.
