CATL battery bond issuance to fund global capacity expansion

CATL Battery

CATL battery bond issuance plans are moving into focus. CATL said it will raise up to 10bn yuan, or $1.4bn. Therefore, CATL battery bond issuance will support construction and working capital.

The company did not name specific projects. However, the funding aligns with its accelerating capacity buildout. As a result, CATL battery bond issuance supports both near-term liquidity and long-cycle investments.

China buildout targets multi-site gigafactory scale

CATL is expanding its domestic footprint across multiple provinces. It is building a 100GWh per year plant in Jining. Meanwhile, it is developing a 40GWh per year project in Dongying.

The company is also pushing scale in Xiamen with an 80GWh per year project. Therefore, CATL battery projects in China keep absorbing capital and execution capacity. This pipeline also tightens competition for equipment and upstream materials.

Overseas plants deepen CATL’s supply chain footprint

CATL continues to localise production outside China. It started building an LFP battery plant in Aragon on 26 November. Meanwhile, it already operates a 14GWh per year plant in Germany.

CATL is building a 100GWh per year plant in Hungary that should start in early 2026. It also expects a 15GWh per year plant in Indonesia to begin production in 2027. As a result, CATL global battery capacity is shifting closer to end markets.

The Metalnomist Commentary

Bond funding often signals confidence in sustained battery demand. However, margin pressure can rise if capacity expands faster than EV uptake. Therefore, project selection and customer contracts will decide the payoff from CATL’s bond move.