The U.S.–China tech and energy rivalry just got more intense.
Lawmakers from the U.S. House Select Committee on the Chinese Communist Party (CCP) have subpoenaed JPMorgan Chase and Bank of America over their involvement in Contemporary Amperex Technology Co. Limited’s (CATL) recent $5.2 billion IPO in Hong Kong.
So what’s the issue? It all comes down to national security, China's grip on EV battery tech, and Wall Street’s role in funding it.
Who Is CATL?
If you're new to the electric vehicle (EV) space, here's what you should know:
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CATL is the world’s largest EV battery manufacturer, based in Fujian, China.
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It supplies batteries to Tesla, BMW, Hyundai, Honda, and others.
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It’s also one of China’s most influential tech companies and closely tied to the state’s clean energy strategy.
In short: CATL powers millions of EVs globally and is a pillar of China’s battery dominance.
Why Are US Lawmakers Concerned?
The subpoenas came after JPMorgan and Bank of America helped underwrite CATL’s massive public offering in Hong Kong earlier this year. The deal raised $5.2 billion, making it one of the largest listings of 2025.
U.S. lawmakers argue that:
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CATL is linked to China’s military‑civil fusion efforts.
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The firm may be aiding Chinese military goals indirectly via its dual‑use technologies.
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By supporting CATL’s IPO, U.S. banks are funding a company that poses a national security risk.
The committee said it requested voluntary cooperation from the banks earlier in 2025 but got no meaningful response. Hence, the subpoenas.
You can read the full report on WSJ.
What JPMorgan and Bank of America Said
Both banks issued public statements saying they are:
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Aware of the subpoenas
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Committed to cooperating with the committee
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Confident in their compliance with all legal requirements
They haven’t admitted any wrongdoing, and the IPO itself wasn’t illegal. But lawmakers believe these banks should have considered the strategic implications of funding a Chinese tech giant in a critical industry.
How Does This Fit into the Bigger Picture?
This isn’t just about CATL—it’s part of a larger geopolitical strategy:
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China wants to control global clean energy supply chains, especially EV batteries.
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The U.S. wants to reduce dependency on China for key technologies.
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Wall Street sits in the middle, enabling capital flow across borders.
Other Chinese firms like Huawei, SMIC, and BYD have already faced scrutiny or sanctions. CATL might be next.
CATL’s Battery Empire
Let’s look at what makes CATL such a major player:
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Supplies over 35% of global EV batteries
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Major customers include Tesla, Ford, Volkswagen, and Hyundai
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Research leader in lithium iron phosphate (LFP) and sodium‑ion technologies
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Actively expanding in Mexico, Indonesia, and Europe
The company’s size and influence make it hard to avoid for automakers. That’s part of the dilemma.
IPO Details: Why It Mattered
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IPO Date: May 2025
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Amount Raised: $5.2 Billion
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Exchange: Hong Kong
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Underwriters: JPMorgan, Bank of America, HSBC, and several Asian firms
The IPO allowed CATL to fund new R&D, expand overseas, and scale production even further.
Critics say U.S. banks are helping CATL become stronger—against U.S. strategic interests.
What's Next?
The House committee may recommend:
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Stricter due diligence rules for banks working with Chinese companies.
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Increased scrutiny for Wall Street firms engaging in IPOs linked to critical tech.
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Potential sanctions or restrictions on Chinese battery companies.
Expect more congressional hearings, media attention, and bipartisan debates over how much Wall Street should engage with Chinese firms like CATL.
Final Thoughts
This CATL IPO controversy shows just how intertwined business and geopolitics have become.
Yes, CATL makes amazing batteries. Yes, they power the EV revolution. But behind the scenes, there's a power struggle about who controls the future of energy—and whether U.S. financial institutions are helping or hurting their own country’s interests.