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China Taps Markets For $10bn To Cement Clean Tech Supremacy

China Taps Markets For bn To Cement Clean Tech Supremacy

Three Chinese electric vehicle battery and material companies are tapping investors for more than $10bn in new funding as the country cements its dominance over global clean tech supply chains.

China’s Contemporary Amperex Technology, the world’s biggest battery maker, this week concluded the second-largest global equity capital market transaction this year, as a wave of battery and rare earths companies rushed to meet booming demand.

The combined fundraising by the three Chinese groups — CATL, Tianqi Lithium and Huayou Cobalt — eclipsed the hundreds of millions of dollars being spent by Washington and US allies including Australia and South Korea to chip away at China’s supremacy in the sector.

“China is trying to position itself as the Saudi Arabia of clean tech hardware, being the lowest cost supplier and achieving the highest market share,” said Neil Beveridge, a senior analyst at Bernstein in Hong Kong. “This is a massive geostrategic competition between China and the west.”

Factories in China account for nearly three-quarters of global EV battery production and command 90 per cent of the market share for processing rare earth elements — the oxides, metals and magnets used in batteries — a level of dominance akin to its stronghold over the solar industry.

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CATL, a critical supplier to Tesla and Chinese homegrown automakers such as Geely, kicked off its Rmb45bn ($6.7bn) private placement last week, pricing at Rmb410 per share on Wednesday. Including the latest jumbo stock sale, CATL has raised about $13bn since listing in Shenzhen in 2018, according to Financial Times calculations and Refinitiv data.

Foreign investors were keen to participate. JPMorgan, Barclays, Morgan Stanley, Macquarie and HSBC all grabbed a slice of the share sale,…

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