The "battery king" faces a challenge.

On November 20, CATL (03750.HK) saw its shares drop over 6% as half of its H股 IPO cornerstone investors' locked-up shares—approximately 77.5 million—were released.

Market pressure on CATL intensified when news broke on November 14 that co-founder Huang Shilin planned to sell shares worth over $17 billion, triggering a two-day slump that wiped out billions in market value.

For a trillion-yuan company like CATL, such fluctuations are minor. What drew attention was the seller: a co-founder who left three years ago to focus on energy storage—a sector CATL is banking on for growth.

Huang’s massive sell-off likely aims to fund his energy storage ventures, turning a former ally into a competitor—yet CATL continues to support him, showcasing its loyalty.

**The Impact of the Sell-Off**

This could be the largest share reduction in A股 history. Huang’s planned sale of 45.63 million shares (1% of total equity) was executed via a block transfer to institutional investors at $376.12 per share, a 3.75% discount, raising $17.16 billion.

The method minimized market disruption, but CATL’s shares still fell for two days, shedding $84 billion in A股 and $250 billion in H股. Analysts note that while institutions are bullish, arbitrage opportunities may have driven demand.

**A Loyal "Brother"**

Huang, CATL’s former No. 2 executive, retains a 9.21% stake post-sale, worth over $160 billion. His startup, Fujian Times Star Cloud Technology, backed by CATL’s 18.96% stake, struggles with losses but benefits from their ties.

Similarly, Tianhua New Energy, a battery materials firm, received a $2.6 billion lifeline from CATL, deepening their strategic partnership.

**Challenges Ahead**

CATL’s energy storage business, now 27.6% of revenue, outpaces slowing growth in power batteries. Its global expansion continues with plants in Hungary, Spain, and Indonesia.

Yet, with power battery market share slipping from 52.1% in 2021 to 41.7% this year, CATL pivots to battery-swapping, targeting 1,000 stations this year and 30,000 long-term. Despite progress, profitability remains uncertain.

As competition heats up, CATL’s throne as the "battery king" faces growing tests.