By Jiahui Huang

Shares of Chinese battery maker Contemporary Amperex Technology rose sharply in Hong Kong and Shenzhen, after CATL's deal with an energy storage-system manufacturer boosted sentiment about the battery sector.

The company's Hong Kong-listed shares closed 3.2% higher at 567.50 Hong Kong dollars, equivalent to $73.02, on Thursday. Its Shenzhen-listed shares closed 7.6% higher at a record 415.60 yuan, or $58.43.

The gains came after CATL signed a 10-year partnership with Beijing HyperStrong Technology, the leading manufacturer of energy storage systems worldwide. HyperStrong said that it will buy up to 200 gigawatt hours of battery energy storage systems from CATL between 2026 and 2028.

Beijing HyperStrong Technology closed 20% higher, hitting the Shanghai Stock Exchange's daily trading limit.

Considering it is the fourth quarter, the peak season for EV manufacturing, the pricing of the ESS contract was likely set at an advantage to CATL, Morningstar senior equity analyst Vincent Sun said.

The gains were also likely driven by news that the national standard for solid-state batteries will be released soon, which would benefit the development of the solid-state battery industry, Sun added.

"After two years of disciplined capacity growth, the battery sector is entering a new expansion phase," said HSBC Global Research analysts led by Yuqian Ding in a recent note. The rebalancing of supply and demand has slightly increased battery and supply chain pricing from trough levels, they said.

Demand is surging across the energy storage system and EV segments, they said. China's battery energy storage system sales in the domestic market reached 211 gigawatt-hours in the first nine months of this year, they added.

The deal between HyperStrong and CATL added to signs of stronger demand for battery energy storage systems in the next few years.

The battery maker maintains a leading position in its home market of China. It held a 46% share of the EV-battery industry in October, according to data from the China Automotive Battery Innovation Alliance. CATL is also a top battery supplier for major automakers, counting Tesla, Volkswagen, BMW and Geely among its clients.

Write to Jiahui Huang at jiahui.huang@wsj.com

(END) Dow Jones Newswires

November 13, 2025 04:11 ET (09:11 GMT)

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