Looking at future capacity demand and the company's current capacity profile, it has a capacity gap of no less than 390 GWh by 2025, CATL said.

(Image credit: CATL)

Although Contemporary Amperex Technology Co Ltd (CATL, SHE: 300750) is already the world's largest power battery maker, it still sees more growth opportunities.

Demand for power and energy storage batteries is expected to continue to rise significantly over the next few years, and the company still has room to increase its market share, CATL said in a prospectus for an offering of shares to certain parties today.

CATL's battery capacity is expected to reach more than 670 GWh by 2025 according to current estimates, it said.

The company plans to raise up to RMB 45 billion in total from an equity offering to no more than 35 specific targets to support its further expansion.

Based on future capacity demand and the company's existing capacity, it has a capacity gap of no less than 390 GWh by 2025, CATL said.

The annual capacity of lithium-ion batteries that the company plans to raise will increase, as well as the projected capacity of the battery projects it has announced since issuing this offering, totals about 353 GWh, according to CATL.

The company is facing a capacity shortfall greater than capacity supply, and its current capacity cannot meet future market demand, so raising new funds is in line with the company's business development needs, it said.

CATL's lithium-ion battery capacity in 2021 was 170.39 GWh, and the lithium-ion battery production lines that have been completed and put into operation will have a combined design annual capacity scale of 260 GWh to 280 GWh after stable operation, the company said.

In August last year, CATL announced plans to raise RMB 58.2 billion through a private placement, but was subsequently challenged for overfunding.

In November, CATL lowered its planned fundraising by RMB 13.1 billion to RMB 45 billion to increase battery capacity by 135 GWh.

On April 29, CATL issued an announcement saying that it had received approval from the China Securities Regulatory Commission for the financing plan.

CATL maintained its leadership position as the world's largest electric vehicle battery maker in the first quarter, shipping 33.3 GWh with a 35 percent share, according to a May 2 report by Seoul-based SNE Research.