Contemporary Amperex Technology Co Ltd (SZ:300750), the world's largest EV battery manufacturer and a key Tesla supplier, is seeking a $1 billion credit facility to finance a new cell-production joint venture in Karawang, West Java. Here's what investors should know.

Why Indonesia Matters for CATL's Global Ambitions

• Strategic Location: Proximity to nickel and cobalt mines lowers raw-material costs.

• Capacity Expansion: The Karawang plant aims to scale CATL's output to meet surging EV demand worldwide.

• Long-Term Partnership: A loan term of five to seven years aligns debt servicing with project ramp-up timelines.

Funding Structure and Market Impact

CATL plans to raise the facility through a consortium of regional and international banks. By tapping long-dated credit rather than equity, the company can preserve ownership leverage while maintaining operational flexibility.

— Shenzhen-listed CATL shares rose 1.4% on the news, reflecting investor confidence in growth prospects.

Financial Health & Credit Profile

Even after this borrowing, CATL's balance sheet is expected to remain robust. Analysts will watch leverage and coverage ratios closely as project capex intensifies:

• Debt Metrics: Use the Ratios TTM Statement Analysis API to track CATL's net debt/EBITDA and interest coverage over the coming quarters.

• Issuer Ratings: The Company Rating API provides updates on CATL's credit scores—critical as the firm takes on long-term project debt.

Secondary Listing to Complement Funding

Bloomberg reports CATL is also weighing a secondary Hong Kong listing targeting at least $5 billion in fresh equity. This dual-track financing approach—combining debt for project capex and new equity for balance-sheet strength—underscores CATL's ambition to solidify its leading position in the lithium-ion battery market.

By monitoring these FMP APIs for real-time leverage ratios and credit updates, investors can gauge how CATL balances aggressive expansion with financial discipline.