In a statement, Chinese battery giant CATL said, it is planning a private share placement to raise up to $8.98 billion (58.2 billion yuan) to fund six projects aimed at boosting the production capacity of lithium-ion batteries.
The development comes at a time when its peers, Contemporary Amperex Technology Co Ltd is expanding battery manufacturing capacity in Germany and in China.
CATL also plans on use several battery factories in Zhejiang, Fujian, and Guangdong in China. It will use the capital to develop battery technologies for energy storage facilities.
With the global auto industry accelerating its transformation towards electrification, CATL is supplying electric vehicle batteries to many automakers including Tesla Inc, Geely, and Volkswagen AG.
With the news reaching the market, CATL’s shares rose more than 5% on Friday.
The company has a market capitalization of more than $169.85 billion (1.1 trillion yuan).
($1 = 6.4764 Chinese yuan)