• China aims to install over 180 million kW of new energy storage capacity by 2027, driving about RMB 250 billion ($35 billion) in direct project investment.
• CATL shares in Hong Kong surged as much as 10 percent to HK$476.8, hitting a record high since its May 20 listing there.

CATL (HKG: 3750, SHE: 300750) surged on Monday as China's energy storage plans fueled optimism and the battery giant's market share expanded.

The company's Hong Kong-listed shares climbed as much as 10 percent to HK$476.8 in morning trading today, hitting a record high since its May 20 listing there and pushing its total market capitalization to HK$2.12 trillion ($273 billion).

Its Shenzhen-listed shares climbed as much as 14 percent to RMB 371.52, hitting their highest level since December 2021.

Several other Chinese battery giants also surged. CALB soared as much as 14 percent in Hong Kong, while Rept Battero Energy jumped about 7 percent.

The surge was partly driven by China's September 12 release of an action plan for large-scale new energy storage development, injecting fresh optimism into the battery sector.

China aims to achieve over 180 million kW of new energy storage capacity by 2027, driving about RMB 250 billion ($35 billion) in direct project investment, according to the document issued by the National Development and Reform Commission and the National Energy Administration.

The new energy storage technology roadmap will continue to prioritize lithium-ion battery storage, while further diversifying various technical approaches and application scenarios, the document said.

In a September 14 research note, JPMorgan analyst Rebecca Wen's team upgraded CATL to overweight due to its robust profit outlook.

Given better-than-expected demand and production plans for energy storage systems in the third quarter, JPMorgan raised CATL's 2025-2026 earnings forecasts by about 10 percent.

CATL's expansion of its leadership in China's EV battery sector last month also contributed to increased investor optimism.

CATL's August power battery installations reached 26.45 GWh, maintaining its top position with a 42.35 percent market share. This represents a 0.95 percentage point increase from July's 41.40 percent share, according to data released by the China Automotive Battery Innovation Alliance (CABIA) on September 11.

Additionally, a major lithium mine operated by CATL that had suspended production is reportedly set to resume operations soon, easing concerns about its supply chain.

($1 = RMB 7.1205, $1 = HK$ 7.7746)