On September 30, Contemporary Amperex Technology Co., Limited (CATL) announced that its wholly-owned subsidiary, Contemporary Amperex Technology Luxembourg S.à r.l., intends to extend a €50 million (approximately RMB 381 million) shareholder loan commitment to its controlled subsidiary, Contemporary Star Energy S.L. The funds will be allocated toward construction investment and daily operations for their joint battery factory in Spain.
According to the announcement, Contemporary Star Energy S.L. may draw down the loan in single or multiple tranches based on actual requirements. The loan carries a fixed annual interest rate of 3.55%, with the term running from the drawdown date of each tranche to the maturity date specified in the agreement. Subject to fulfilling relevant compliance procedures, the loan principal and accrued interest may be converted into equity shares of Contemporary Star Energy S.L.
Contemporary Star Energy S.L. is a joint venture established in Spain by CATL and Stellantis N.V., serving as the primary investment and construction entity for the Spanish battery gigafactory project. CATL indirectly holds a 50% equity stake in Contemporary Star Energy S.L. through Contemporary Amperex Technology Luxembourg S.à r.l., while Stellantis subsidiaries Stellantis España, S.L. and Stellantis Auto S.A.S. hold 40% and 10%, respectively.
Incorporated on January 31, 2025, with a registered capital of €172 million (approximately RMB 1.311 billion), the joint venture is primarily responsible for manufacturing, selling, and supplying battery cells, modules, and components for motor vehicles, as well as constructing and operating the related manufacturing facilities.
The maximum term of the loan is 12 months, expiring 12 months from the date of agreement signing, or on the date when all principal and accrued interest are fully repaid or converted into equity shares of Contemporary Star Energy S.L., whichever is earlier. Other shareholders of Contemporary Star Energy S.L. will also provide financial assistance under equivalent terms in proportion to their respective capital contributions.
CATL stated that this financial backing is intended primarily to fulfill the working capital demands of Contemporary Star Energy S.L. and support the development of the joint battery plant in Spain. Since Contemporary Star Energy S.L. is a controlled subsidiary included within CATL's consolidated financial statements, the company can effectively manage operational, financial, and fund-related risks.
The proposal was reviewed and passed at the 20th meeting of CATL’s 4th Board of Directors on September 30 and remains subject to approval by the company's general meeting of shareholders.
Source：EnergyTrend