The world’s largest electric vehicle (EV) battery manufacturer saw its shares surge on their debut in Hong Kong, marking the biggest initial public offering (IPO) of the year so far.

China’s Contemporary Amperex Technology Co Limited (CATL) produces over a third of the world’s EV batteries and supplies major automakers such as Tesla, Volkswagen, and Toyota.

The IPO attracted significant attention amid the ongoing US-China trade tensions, which have disrupted global markets and impacted automakers.

Earlier this year, the US Department of Defense included CATL on a list of companies it alleges have ties to China’s military. CATL denies these claims, calling its inclusion a “mistake.” The company raised nearly HK$35.7 billion ($4.55 billion; £3.4 billion) through the listing, with shares rising as much as 18%.

Neil Beveridge, head of research for Asia at Bernstein, described the stock’s performance as “very good” and noted the IPO’s importance for Hong Kong given its size.

CATL is already listed on China’s Shenzhen Stock Exchange, where it holds a valuation exceeding one trillion yuan ($138.7 billion; £104.3 billion).

The company depends heavily on the Chinese market, which accounts for nearly 70% of its revenue.

With relatively limited sales in the US, CATL is expected to be largely insulated from US trade policies, Beveridge said.

“The direct impact of tariffs will likely have only a limited effect on the company,” he told the BBC.

Founded in 2011 in Ningde, eastern China, CATL has grown rapidly alongside the country’s EV boom.

The battery giant employs over 100,000 people and operates 13 production facilities worldwide.

CATL is expanding in Europe, currently constructing a second factory in Hungary following the opening of a German plant earlier this year.

In December, CATL announced a partnership with Stellantis, Chrysler’s parent company, to build a $4.3 billion (£3.2 billion) EV battery factory in Spain, expected to start operations by the end of next year.

The company invests heavily in technology development, maintaining six R&D centers globally.

Tim Buckley, founder of the Australian think tank Climate Energy Finance, praised CATL’s innovations, especially in fast-charging technology.

Last month, CATL revealed a new battery capable of being charged for 323 miles (520 km) in just five minutes.

CATL supplies lithium iron phosphate batteries to Tesla’s Shanghai factory.

However, US lawmakers have raised national security concerns about the Chinese firm.

In April, the chair of the House Select Committee on China urged JPMorgan and Bank of America to withdraw from involvement in CATL’s Hong Kong IPO.

Despite Washington’s wariness of Chinese companies, Buckley argues that the US should collaborate with Beijing to advance renewable energy technology.