China’s Sinopec invests in CATL for EV battery growth

Market: Battery materials, Metals
23/05/25

Chinese state-controlled oil refiner Sinopec has invested in country's largest battery producer CATL, to help reach its target of building 10,000 electric vehicle (EV) battery exchange stations.

Sinopec was the largest cornerstone investor in CATL's initial public offering (IPO) this week, it said on 23 May. CATL raised $4.6bn from the sale of 135.6mn of its shares on the main board of the Hong Kong Stock Exchange on 20 May, in what was likely the world's largest IPO this year.

The two firms reached an initial agreement in April to build more than 500 EV battery exchange stations nationwide this year. They have set a target of building 10,000 stations in the long term.

Sinopec and CATL on 21 May also reached final agreement to co-operate on the Qiji Exchange Station project for heavy trucks in southeast China's Fujian province. The project will serve road freight transportation on the coastal route between the Yangtze River Delta and the Pearl River Delta using CATL's latest battery exchange system.

Sinopec has so far built 30,000 integrated energy charging stations in China to serve 300mn users, including around 10,000 EV charging and battery exchange stations.

An increasing number of conventional energy companies in China have accelerated investments in the new energy market in recent years, particularly given rapid growth in the country's EV sales. State-run energy firm and refiner PetroChina launched a "supercharger satiation" in the Yili road area of Shanghai in March.

PetroChina, domestic automaker SAIC, Sinopec and CATL established the Shanghai JieNeng Zhidui New Energy Technology joint venture in September 2022, to lease EV battery packs and develop EV battery exchange technology.

CATL is building a 40 GWh/yr factory in Dongying, which is the largest oil refining city in China.

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Q&A: Used vehicle demand in an electrified world

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