Contemporary Amperex Technology to invest HK$1 billion in Hong Kong headquarters

Contemporary Amperex Technology, the world’s leading electric vehicle battery maker, will invest more than HK$1 billion (US$128 million) in its new Hong Kong headquarters, the city’s finance chief has said.

The company’s local operation would focus on product patents and the expansion of its international business, the firm added.

In a speech on Thursday, Financial Secretary Paul Chan Mo-po welcomed the battery giant’s move to establish its overseas headquarters and R&D centre in the city, saying it would speed up the development of Hong Kong’s innovation and technology industry.

EV battery giant CATL to open research and development centre in Hong Kong

“As far as I understand, you will invest more than HK$1 billion and create employment opportunities for more than 500 individuals,” Chan said during a signing ceremony for a memorandum of understanding between the company and the Hong Kong Science Park, the city’s IT hub.

“This is undoubtedly a significant and promising investment. We also hope that through this collaboration, your company can achieve even greater success on the international stage.”

Company chairman Robin Zeng said the company would take advantage of the city’s free flow of information and emphasis on talent to grow its patents as part of efforts to expand overseas.

The company had 18,000 research and development staff on its payroll and owned more than 22,000 patents, Zeng said, adding the firm was granted between 7,000 and 8,000 new patents each year. It also allocated 10.6 billion yuan (US$1.36 billion) in the first half of this year to resources for R&D, he added.

“The products developed by the R&D centre in Hong Kong are patents, which are then licensed to other companies, such as Ford in the United States, from whom we collect licence fees and royalty fees,” Zeng said. “We can also charge by providing services.

“This patent licensing and operation model is a low-asset approach, particularly in the current complex geopolitical landscape. It proves to be a favourable model.”

In the first half of this year, the company had 37 per cent of the market share, while its shipment volume surpassed global competitors between 2021 and the first half of this year, capturing 43 per cent of the market share.

CATL to make battery offering 400km driving range from 10-minute charge

Secretary for Innovation, Technology and Industry Sun Dong said the company’s decision to set up its headquarters in the city was a vote of confidence in Hong Kong as a global technology hub and an international financial centre.

“With Hong Kong’s advantage of being connected to the world through its close ties with the mainland, I believe that Hong Kong can undoubtedly support [the company] in building its global industrial footprint,” he said, reiterating the city’s goal of attracting 100 cutting-edge overseas companies in five years.

In October, the government said more than 30 overseas companies had pledged to build a presence in Hong Kong through the Office for Attracting Strategic Enterprises, which is looking to attract companies specialising in healthtech, artificial intelligence and big data.