CATL, a leading manufacturer of power batteries, has recently launched its first external financing round for its skateboard chassis business. The unit, Contemporary Amperex Intelligence Technology (Shanghai) Limited (CAIT-SH), has initiated the financing with a substantial amount of RMB 2 billion yuan ($280 million) and a pre-investment valuation of approximately RMB 9 billion yuan.
Established in 2021, CAIT-SH focuses on providing battery-centric skateboard chassis-related products and technical services. As a wholly-owned subsidiary of CATL, the company introduced new investors in November 2023, all of whom are CATL-affiliated entities. The financing for CAIT-SH was conducted through a targeted invitation, with CATL setting a minimum investment amount of RMB 100 million yuan. Notably, all external investors who have participated in the financing round are large state-owned entities.
The valuation of RMB 9 billion yuan aligns closely with the net assets of the business, making the first round of investment a cost-effective opportunity for interested parties. Some external investors have already completed their investments in CAIT-SH, with a subsidiary of Industrial Bank Trust securing a 9.99 percent stake. Additionally, another major financial institution has confirmed its participation with an investment scale of RMB 200 million.
CATL previously introduced the CIIC (CATL Integrated Intelligent Chassis) skateboard chassis and later launched the flagship variant, the Bedrock Chassis, in December 2024. The Bedrock Chassis prioritizes safety and has been adopted by Avatr Technology, a subsidiary of Changan Automobile. However, the timeline for the launch of the first model utilizing the chassis has not been disclosed.
As the world’s largest power battery manufacturer with a 38.1 percent market share in January-May, according to SNE Research, CATL faces challenges in further market share growth in the power battery segment. To explore new growth opportunities, CATL is increasing its investment in the skateboard chassis business, as growth in the power battery sector has slowed down.
By venturing into the skateboard chassis business, CATL aims to diversify its portfolio and capitalize on emerging opportunities in the electric vehicle industry. With a strategic focus on innovation and expansion, CATL is poised to maintain its position as a key player in the evolving automotive market.
