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(Bloomberg) — Contemporary Amperex Technology Co. Ltd., 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, according to a person with knowledge of the plans.

The battery giant has approached sovereign wealth funds and key customers like Mercedes-Benz Group AG to invest in the fund, according to the Financial Times, which first reported the development. The fund would help the battery maker expand its supply chain in Europe and other foreign markets.

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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, he said, without providing further details.

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 euro ($8 billion) 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 Inc., CATL maintains a clear lead in the global battery market with a 37.5% share in May, according to SNE Research. Within China, the world’s biggest EV market, it is even more dominant, with a 45% share.

The Ningde, Fujian-based company’s shares are up 12.3% this year in Shenzhen. The Bloomberg Electric Vehicle Price Return Index, which includes EV producers, battery makers and other parts suppliers, is down 19.6% over the same period.

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