CATL lawsuit threatens Hithium IPO

China’s Contemporary Amperex Technology Co. Ltd. (CATL), the world’s largest battery manufacturer, has filed a lawsuit accusing fast-growing rival Hithium of unfair competition – a move that could jeopardize Hithium’s upcoming initial public offering (IPO) in Hong Kong.

From ESS News

CATL initiated legal proceedings on June 25 at the Intermediate People’s Court of Ningde in China's Fujian province, targeting Hithium and five affiliated entities, including its founding executives and several suppliers, court filings show. The court is scheduled to hear the case on Aug. 12, during the critical review period of Hithium’s Hong Kong stock exchange listing application.

The lawsuit alleges that Hithium engaged in systematic poaching of CATL’s technical personnel and developed battery products – notably, the 587 Ah cell – with specifications nearly identical to CATL’s own patented designs. CATL emphasizes that the energy density deviation between the two products is just 4.4%, well below the 10% technical threshold typically used to differentiate original designs from potential infringements.

Founded in 2019, Hithium has emerged as one of the key players in the global energy storage market. In just five years, the Xiamen-based company climbed to third place globally in lithium-ion storage battery shipments, trailing only CATL and EVE Energy. It now operates or is building production facilities in Xiamen, Chongqing, Shandong, and Texas, with plans to reach over 100 GWh in annual capacity by 2026.

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