A huge battery maker powers up in Hong Kong

Summary

Marketplace Morning Report: A Huge Battery Maker Powers Up in Hong Kong

Release Date: May 20, 2025

In this episode of the Marketplace Morning Report, listeners are brought up to speed on significant business and economic developments shaping the global landscape. Hosted by Marketplace and featuring contributions from the BBC World Service, the report delves into the monumental IPO of Chinese battery manufacturer CATL, alongside other noteworthy updates in the automotive and financial sectors. Additionally, the program highlights Australia's proactive measures to support individuals with autism, showcasing impactful real-life stories.

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CATL's Landmark IPO on the Hong Kong Stock Exchange

[01:30] Stuart Clarkson opens the segment by announcing a groundbreaking event in the global markets: "It's the biggest public listing in the world this year," referring to CATL's debut on the Hong Kong Stock Exchange. Although CATL is a giant in the electric vehicle (EV) battery sector, many may not be familiar with the company. On its first day of trading, CATL's shares experienced a remarkable surge, indicating robust investor confidence.

[01:59] Suranjana Tiwari provides deeper insights, stating, "Seattle supplies some of the world's biggest electric vehicle makers. It has almost 40% of the global EV battery market and has been a key player through the rapid growth in China's domestic EV sector." CATL's strategic partnerships with industry titans like Tesla and Toyota underscore its pivotal role in the EV ecosystem.

The IPO's performance was stellar, with shares opening [02:24] Suranjana Tiwari noting, "it opened at 12.5% higher than the initial price and even went up to 18% during trade." This enthusiasm enabled CATL to raise approximately $4.6 billion, surpassing its initial goal of $4 billion, thereby securing its position as the largest public listing globally for the year.

However, CATL's journey is not without challenges. [03:09] Suranjana Tiwari addresses the controversies surrounding the company: "CATL was actually placed on a U.S. defense Department list just in January of Chinese companies that the department says work with China's military." While Beijing has criticized this designation, CATL has firmly denied any involvement in military activities. In its prospectus, the company emphasized its collaboration with U.S. authorities to address and rectify these "false designations."

Looking ahead, CATL aims to expand its footprint in Europe. [03:03] Stuart Clarkson queries, "they already work with Tesla and Volkswagen and Toyota, but they want to get into more markets in Europe, don't they?" [03:09] Suranjana Tiwari confirms, "Seattle wants to expand in Europe... to fund a new factory in Hungary that it hopes will supply European automakers like BMW, Stellantis and Volkswagen." This expansion comes at a sensitive time, given the ongoing tensions between the U.S. and China, particularly concerning tariffs and trade relations. The market eagerly awaits how CATL will navigate these geopolitical dynamics to realize its global ambitions.

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Automotive Industry Shifts: Honda's Strategic Pivot

Shifting focus to other automotive news, [04:10] Stuart Clarkson reports that Japanese automaker Honda is reassessing its investment strategies in the EV sector. Due to "slowing demand," as stated by Honda CEO Toshiro Mibe, the company plans to scale back its EV investments. Instead, Honda will pivot towards enhancing its hybrid vehicle lineup, with 13 new hybrid models slated for release globally by 2027. This strategic realignment underscores the varying approaches automakers are adopting in response to fluctuating market demands and the evolving landscape of sustainable transportation.

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Economic Policies and Market Movements

The report also touches upon significant economic policy changes affecting global markets:

• China's Monetary Policy Adjustment: [05:03] China has cut benchmark lending rates for the first time since October, reducing them by 10 basis points to 3%. This move aims to stimulate consumption and loan growth, providing a boost to the nation's economic activities.

• Australia's Interest Rate Cut: The Reserve Bank of Australia has reduced interest rates to a two-year low of 3.85%. This decision is part of broader efforts to invigorate the Australian economy amidst global uncertainties.

• Vodafone's Financial Struggles: Telecommunications giant Vodafone has reported a $1.6 billion pre-tax loss, primarily due to write-downs in its operations in Germany and Romania. This significant downturn highlights the challenges faced by multinational corporations in navigating diverse and volatile markets.

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Australia's Inclusive Employment Strategy for Individuals with Autism

A standout feature of this episode is the spotlight on Australia's seven-year plan to enhance the lives and job prospects of individuals with autism. The initiative seeks to combat economic and social exclusion faced by the autistic community, aiming to foster meaningful change and integration.

[05:33] Matt Vass, an autistic employee at a Sydney school, shares his positive experiences: "I think I fit in very well. I feel very happy to be part of the team." His involvement in the maintenance department over the past five and a half years exemplifies the benefits of inclusive employment practices.

Jane Danvers, the principal at Kambala, emphasizes the value of such initiatives: "This is not an act of charity. Matt is a really integral part of our team. He's completely reliable, so he has a great deal of respect and humanity in the way that he actually engages with people and how he goes about his responsibilities every day." Her testimony highlights the mutual benefits of inclusive hiring for both employees and employers.

[07:14] Phil Mercer reports on the broader impact, noting that autistic Australians are six times more likely to be unemployed than people without a disability. The government's strategy, supported by figures like Amanda Rishworth, aims to lay the groundwork for broader reforms, ensuring better educational and employment opportunities for autistic individuals.

Rachel Taurdian, a regional manager at Job Support, elaborates on the economic sense behind the initiative: "It makes very good economic sense for companies and in fact that's one of the primary drivers. We're stabilizing high turnover positions. The retention rate is on average nine years." This underscores the long-term benefits of fostering a diverse and stable workforce.

At Gunners Barracks overlooking Sydney Harbour, Matt Vass recounts how his role has been transformative: "One of the barriers for me was communication and now because of this job, it has helped me communicate better in the workplace to talk to people, to ask for help and this job has changed my life for the better." Kelly Simmons, the venue manager, adds, "Obviously, I was a little bit hesitant of how much and how capable Keith could do, but then when I realized Keith could come in and realize that he's great and he's just as good as some of my other casual staff. So, yes, it's good."

These personal stories illustrate the profound impact of the government's inclusive employment strategies, fostering an environment where individuals with autism can thrive and contribute meaningfully to society.

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Closing Remarks and Additional Content

The episode concludes with Stuart Clarkson and Phil Mercer expressing gratitude to contributors and listeners alike. Additionally, Amy Scott introduces another Marketplace podcast, "How We Survive," which explores the complexities of climate-conscious investing. She remarks, "I'm Amy Scott, host of How We Survive, a podcast from Marketplace. In this season, we investigate the rise, fall and reincarnation of climate-conscious investing."

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This comprehensive overview of the Marketplace Morning Report offers listeners a deep dive into pivotal economic events, corporate strategies, and social initiatives. From CATL's impressive IPO and Honda's strategic shifts to Australia's commendable efforts to support individuals with autism, the episode encapsulates a broad spectrum of stories that shape our global and local economies.

Transcript

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[Stuart Clarkson]

A huge EV battery maker powers up and the results are positive. Live from the uk, this is the Marketplace Morning report from the BBC World Service. Hello, I'm Stuart Clarkson in for Liana Byrne. So it's the biggest public listing in the world this year, but you might not have even heard of the company. Chinese battery maker Catl has just gone public on the Hong Kong Stock Exchange and shares have soared on the first day of trading today. BBC's Suranjana Tiwari has the details. Good morning.

[Suranjana Tiwari]

Hi there. So, Seattle supplies some of the world's biggest electric vehicle makers. It has almost 40% of the global EV battery market and has been a key player through the rapid growth in China's domestic EV sector. But it's also a partner to the likes of Tesla and Toyota, among other auto giants.

[Stuart Clarkson]

And how has it performed in Day one?

[Suranjana Tiwari]

Yeah, there was high demand for Seattle shares. It opened at 12.5% higher than the initial price and even went up to 18% during trade. And that allowed Seattle to raise around $4.6 billion. Now, that was more than the goal of $4 billion, but it also makes it the largest public listing in the world this year. Now, this is the second public listing for Seattle. It's already on the Shenzhen Stock Exchange. But there's been a lot of fanfare today as it went public and there's likely to be going forward as well.

[Stuart Clarkson]

And this is a company on the march. They already work with Tesla and Volkswagen and Toyota, but they want to get into more markets in Europe, don't they?

[Suranjana Tiwari]

That's right. And this is not a company without any controversy. CATL was actually placed on a U.S. defense Department list just in January of Chinese companies that the department says work with China's military. Beijing has previously criticized that list. And CATL denies engaging in any military activities and said in its filing documents what's called the prospectus, that it is working with the US to address the quote, false designations. As you mentioned, Seattle wants to expand in Europe. It says it wants to raise the money from this IPO to fund a new factory in Hungary that it hopes will supply European automakers like BMW, Stellantis and Volkswagen. But of course, times are tense between the US And China with tariffs, so we'll have to see how that plays out in relation to CATL and its global expansion plan.

[Stuart Clarkson]

Okay, interesting stuff, sir. And Chana, thanks for being with us on Marketplace. Enjoy your day.

[Suranjana Tiwari]

Thanks a lot.

[Stuart Clarkson]

Well, while Seattle is eyeing electric vehicle growth, Japanese carmaker Honda has announced it's scaling back its investment in EVs because of slowing demand. The CEO Toshiro Mibe says it'll focus on hybrids with 13 new models being released globally from 2027. Staying in Japan. And the country's agriculture minister has apologized after making a joke which some people considered to be in extremely bad taste. Taku eto. He was gifted so much rice that didn't have to buy any of it himself. The comments were deemed highly insensitive as prices have doubled in the past year amid a shortage of rice in Japan. Let's do the numbers now. And China has cut benchmark lending rates for the first time since October. A 10 basis point drop to 3% is aimed at stimulating consumption and loan growth. Meanwhile, Australia's central bank has cut interest rates there to a two year low of 3.85%. And cell provider Vodafone has reported a $1.6 billion pre tax loss because of write downs in its operations in Germany and Romania. Now, people with autism often suffer economic and social exclusion. And the Australian government has a seven year plan to improve their lives and their job prospects. It's hoped the strategy will lead to meaningful change for a group that lags behind the rest of the population in many areas of life. The BBC's Phil Mercer reports from Sydney.

[Matt Vass]

I think I fit in very well. I feel very happy to be part of the team.

[Phil Mercer]

Matt Vass is autistic and is a valued member of staff at a school in Sydney. He's worked in the maintenance department for five and a half years.

[Matt Vass]

I like doing my work, gives me sense of purpose, makes me feel very happy.

[Jane Danvers]

Jane Danvers and I'm the principal at Kambala. This is not an act of charity. Matt is a really integral part of our team. He's completely reliable, so he has a great deal of respect and humanity in the way that he actually engages with people and how he goes about his responsibilities every day.

[Phil Mercer]

Autistic Australians are six times more likely to be unemployed than people without a disability. The new government strategy aims to give them more help to find a job. The plan has broad support, although some charities say there's not enough focus on improving education for autistic children.

[Jane Danvers]

The figures suggest about 300,000 people have a diagnosis of autism.

[Phil Mercer]

Amanda Rishworth was a key part of the ministerial team in Canberra that devised the new blueprint.

[Jane Danvers]

We believe, and there's a lot of evidence to back this up, that this is underestimated. So it is about laying the foundations for future and broader reform as well.

[Phil Mercer]

Job Support is an employment service that helps Australians with intellectual disabilities. Rachel Taurdian is one of its regional managers.

[Jane Danvers]

It makes very good economic sense for companies and in fact that's one of the primary drivers. We're stabilising high turnover positions. The retention rate is on average nine years.

[Phil Mercer]

At the Gunners Barracks overlooking Sydney Harbour, Keith Dennett says the opportunity to work at the hospitality venue has been life changing.

[Matt Vass]

As a person with autism, it is always going to be hard because of the barriers to employment.

[Kelly Simmons]

Kelly Simmons and I'm the venue manager at Gunners Barracks. Obviously, I was a little bit hesitant of how much and how capable Keef could do, but then when I realised Keith could come in and realise that he's great and he's just as good as some of my other casual staff. So, yes, it's good.

[Matt Vass]

One of the barriers for me was communication and now because of this job, it has helped me communicate better in the workplace to talk to people, to ask for help and this job has changed my life for the better. It has.

[Phil Mercer]

Keith and many others have shown that given the chance, they will succeed. In Sydney, I'm the BBC's Phil Mercer for Marketplace.

[Stuart Clarkson]

Phil, thank you and thank you to you for listening. Our producer today was Craig Henderson. Our editor is Naomi Raney. Here in the uk, I'm Stuart Clarkson with the Marketplace morning Report from the BBC World Service. Have a great day.

[Amy Scott]

Can we invest our way out of the climate crisis? Five years ago, it seemed like Wall street was working on it until a backlash upended everything.

[Suranjana Tiwari]

So there's a lot of alignment between the dark money right, and the oil industry on this effort.

[Amy Scott]

I'm Amy Scott, host of How We Survive, a podcast from Marketplace. In this season, we investigate the rise, fall and reincarnation of climate conscious investing. Listen to How We Survive wherever you get your podcasts.