China-headquartered Contemporary Amperex Technology Co Ltd (CATL), also the world’s biggest maker of electric vehicle batteries, is in talks to launch a $1.5 billion fund to expand its global supply chain, the Financial Times reported, quoting people with knowledge of the plans.

The battery firm has approached sovereign wealth funds, family offices, oil and gas firms and key customers such as Mercedes-Benz Group AG to invest in the fund, according to the FT. The fund would help the battery maker expand its supply chain in Europe and other foreign markets.

Later in a statement, a CATL spokesman confirmed the plans for the fund, which seeks to tap mostly overseas investors.

“The purpose of the fund is to facilitate the global energy transition with support from like-minded partners from all over the world,” the spokesman said. The company has been in discussions with “a number” of potential investors, the person said.

The fund will be managed by Hong Kong-based Lochpine Capital, the FT reported. Lochpine was incorporated in August 2023 as CATL Capital before changing its name.

CATL has so far committed to a battery factory in Hungary in a 7.34 billion euros deal with Mercedes, and partnered with Stellantis NV to set up a European plant. The Chinese battery maker also secured a licensing deal with Ford Motor Co to supply the US automaker.

A key supplier to Tesla, CATL maintains a clear lead in the global battery market with a 37.5 percent share in May, according to SNE Research. Within China, the world’s biggest EV market, it is even more dominant, with a 45 percent share, according to media reports.

CATL is expanding in Europe as tensions between Beijing and Washington threaten its growth plans in North America.

In December, the company hit back against allegations that it posed a national security threat, after US utility company Duke Energy disconnected CATL batteries installed at a North Carolina Marine Corps base.

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