CATL’s Sodium-Ion Megadeal Caps a $5 Billion Capital Blitz

CATL secures record 60 GWh sodium-ion battery contract with HyperStrong, shares surge 4.6% as investors back lithium-free tech. $5B capital raise fuels global expansion.

The world’s largest battery maker is making a bold bet on lithium-free technology. CATL has secured a landmark contract to supply 60 gigawatt-hours of sodium-ion batteries to HyperStrong, an energy storage specialist. The deal, the largest of its kind in the industry, sent shares surging 4.6 percent to HK$636.50 in afternoon trading as investors cheered the push to commercialise cheaper alternatives to lithium.

The order comes hot on the heels of a massive capital injection. CATL recently completed a placement of new H-shares, raising roughly $5 billion to fund global expansion and research. The company’s market capitalisation now hovers around $290 billion, briefly overtaking Chinese consumer giant Kweichow Moutai as investors pile into clean-energy technology leaders. The stock has gained more than 18 percent since the start of the year, though it took a 12.5 percent hit in the past week amid short-term jitters.

Sodium-ion cells are emerging as a cost-effective option for stationary storage and entry-level electric vehicles. CATL’s “Naxtra” series now achieves an energy density of 175 watt-hours per kilogram and maintains performance even at minus 40 degrees Celsius. The technology could help the company sidestep lithium supply constraints and rising raw material costs.

The capital raising also fuels development of next-generation lithium-iron-phosphate batteries. The third generation of CATL’s Shenxing cells targets the high-performance segment, with the ability to charge to 80 percent in under four minutes. Industry analysts expect the fruits of these investments to become visible from 2027 onward, as CATL bridges the gap between lab breakthroughs and mass production across multiple continents.

Operationally, the numbers tell a story of dominance. First-half revenue hit nearly 179 billion yuan, while net profit climbed 33 percent to 30.5 billion yuan. The fresh capital will finance the infrastructure needed to sustain that momentum.

Meanwhile, Western rivals are struggling to keep pace. European battery maker ACC replaced its top management after production hiccups at its French gigafactory. Volkswagen reported a drop in first-quarter operating profit, and General Motors posted a billion-dollar loss in its electric vehicle division. CATL, by contrast, is accelerating — both in the lab and on the factory floor.