Contemporary Amperex Technology Co. Ltd. (CATL) shares surged to record highs Monday after Beijing unveiled an ambitious plan to boost energy storage capacity and support auto-sector demand, driving a rally across China's battery and electric vehicle stocks.
Hong Kong-listed shares of CATL (HKG: 3750) jumped as much as 10% to HK$476.80 in morning trading, the highest level since its May 20 listing, pushing its market capitalization to HK$2.12 trillion ($273 billion). Its Shenzhen-listed shares soared as much as 14% to RMB 371.52, their highest since December 2021. Several rivals gained as well, with CALB up 14% and Rept Battero Energy climbing about 7% in Hong Kong.
The surge followed China's September 12 release of a sweeping action plan for large-scale new energy storage development through 2027. The National Development and Reform Commission and the National Energy Administration said the initiative aims to achieve more than 180 million kW of new energy storage capacity by 2027, generating around RMB 250 billion ($35 billion) in direct investment.
"The move could drive demand for Chinese lithium-battery makers," said Vincent Sun, senior equity analyst at Morningstar, adding that the plan signaled long-term confidence in energy storage technology. The document also reaffirmed that lithium-ion batteries will remain a core focus while promoting diversified technical approaches and application scenarios.
Brokerage upgrades also buoyed sentiment. JPMorgan analyst Rebecca Wen's team upgraded CATL to overweight and raised its 2025-2026 earnings forecast by about 10% on stronger-than-expected demand and production plans for energy storage systems.
CATL further boosted investor confidence with data showing August power battery installations reached 26.45 GWh, maintaining its dominant 42.35% share of China's EV battery market, up from 41.40% in July, according to the China Automotive Battery Innovation Alliance. Reports that CATL's major lithium mine will soon resume production also eased concerns about supply constraints.
Optimism extended beyond battery producers. Automakers rose broadly after China's Ministry of Industry and Information Technology unveiled a plan to expand domestic consumption and encourage vehicle trade-ins. The plan set a 2025 sales target of 32.3 million vehicles, including a 20% increase in new-energy vehicle sales, and aimed for industrywide "stable growth" by 2026.
Li Auto shares gained 4.6% in Hong Kong, BYD added 3.5%, XPeng climbed 1.6% and Nio rose 3.5%. Lithium producers Tianqi Lithium and Ganfeng Lithium also advanced. "Targets for growth and the continued consumer trade-in program could ease concerns about the sector's outlook," said Nomura analyst Joel Ying.
