Contemporary Amperex Technology Co. Limited (CATL), the world's largest battery manufacturer, announced plans to raise $5 billion through a share placement in Hong Kong. The Chinese company priced the offering at the low end of its indicated range.

The fundraising effort aims to support CATL's expansion into renewable energy sectors as global demand for electrification continues to grow. The company has positioned itself as a key supplier in the electric vehicle battery market and is seeking to broaden its presence in clean energy technologies.

Following the announcement, CATL's stock price declined more than 8% as investors reacted to the news of the share placement. The significant drop reflects market concerns about potential dilution from the large equity offering.

The timing of the capital raise comes as the electric vehicle industry experiences rapid growth globally, with manufacturers seeking to secure battery supply chains and expand production capacity. CATL's fundraising represents one of the larger equity offerings in the renewable energy sector this year.

The proceeds from the share placement will help fund the company's strategic initiatives in renewable energy technologies beyond traditional battery manufacturing. CATL has been expanding its footprint internationally as automakers worldwide transition toward electric vehicles.