- CATL's skateboard chassis business recently launched the financing for RMB 2 billion ($280 million), with a pre-investment valuation of about RMB 9 billion.
- CATL requires that the investment amount be at least RMB 100 million yuan, and all external investors who have participated are large state-owned entities.
CATL (SHE: 300750) has reportedly launched its first external financing round for its skateboard chassis business to fuel its further ambitions in the sector.
The unit, Contemporary Amperex Intelligence Technology (Shanghai) Limited (CAIT-SH), has recently launched the financing with an amount of RMB two billion yuan ($280 million), and a pre-investment valuation of about RMB nine billion yuan, according to a report by local media outlet Yiou today.
CAIT-SH was established in 2021 and provides battery-centric skateboard chassis-related products and technical services.
The business is a wholly-owned subsidiary of CATL, which introduced new investors in November 2023, though all are CATL-affiliated companies, the report notes.
CATL did not conduct the financing for CAIT-SH in a fully public manner, but rather through a targeted invitation, according to Yiou.
CATL's requirement was that the investment amount be at least RMB 100 million yuan, and the external investors who have already participated are all large state-owned entities, the report says, citing a source.
The valuation of RMB nine billion yuan is not particularly high, as it is not significantly different from the net assets, and participating in the first round is the most cost-effective, the source said.
Some external investors have already completed their investments in CAIT-SH, including a subsidiary of Industrial Bank Trust, which has secured a 9.99 percent stake, the report said, adding that another large financial institution has also confirmed its participation in the investment, with a scale of RMB 200 million.
CATL previously launched a skateboard chassis named CIIC (CATL Integrated Intelligent Chassis).
In December 2024, CATL launched the Bedrock Chassis, the flagship variant of CIIC, emphasizing safety.
The first automaker to adopt the Bedrock Chassis is Avatr Technology, a subsidiary of Changan Automobile, though the launch timeline for the first model using the chassis has not been announced.
CATL is the world's largest manufacturer of power batteries, maintaining its top position with a 38.1 percent market share in January-May, according to data from South Korean market research firm SNE Research.
Despite its solid position in the power battery market, further market share growth has become challenging.
CATL aims to tap into new growth opportunities by increasing its investment in the skateboard chassis business, as its power battery business growth has slowed, the report by Yiou notes.
($1 = RMB 7.1683)
