July 13, 2024 – According to a report by the Financial Times today, CATL, the world’s largest electric vehicle battery manufacturer, is currently in negotiations with overseas sovereign wealth funds and the private offices of ultra-high-net-worth individuals to raise a $1.5 billion fund for establishing its global supply chain.
The report, citing informed sources, stated that this offshore fund will assist CATL in providing financial support for expanding its enterprise ecosystem necessary for production in Europe and other overseas markets.
According to insiders, CATL plans to contribute approximately 15% of the fund, with global investors making up the remainder. The primary objective of the fund is to finance CATL’s suppliers in Europe.
Other sources revealed that CATL has reached out to families behind Mercedes-Benz and other automakers to seek investments, although Mercedes-Benz has not commented on this matter.
The fund aims to facilitate the global energy transition through support from like-minded partners worldwide, the sources explained, adding that the fund primarily targets overseas investors for fundraising.
CATL’s expansion plans in Europe coincide with the European Union’s intention to impose tariffs on electric vehicles imported from China. Analysts suggest that this move will encourage more Chinese automakers to set up local manufacturing facilities.
