CATL acquires 49% stake in Zhongheng Technology Investment for $600M to expand data center power solutions

CATL, the world's largest battery manufacturer, has invested $600 million (4.1 billion RMB) to acquire a 49% stake in Zhongheng Technology Investment, a major shareholder in Zhongheng Electric. The deal positions CATL to capitalize on the growing demand for high-voltage direct current (HVDC) infrastructure driven by AI data centers transitioning from AC to DC power architectures. Zhongheng Electric, a key supplier to major tech firms including Alibaba and Tencent, specializes in 800V DC power supply products, aligning with future data center power density requirements. The investment underscores CATL's strategic expansion into data center power systems, complementing its existing battery energy storage systems (BESS) business for grid connections.

Counterparts (3)

Investor

CATL

company · 2 deals

Contemporary Amperex Technology Co., Limited (CATL) is a global leader in the development and manufacturing of lithium-ion batteries, focusing on solutions for electric vehicles and energy storage systems. The company is committed to reducing reliance on fossil fuels through innovative battery technology.

target

Z

Zhongheng Technology Investment

company

supplier

Z

Zhongheng Electric

company