AsianFin -- Chinese battery-component manufacturer CNGR Advanced Material Co. is preparing for a Hong Kong listing with the assistance of Huatai Securities Co. and Morgan Stanley, according to sources familiar with the matter.

The company aims to raise between $400 million and $500 million through the share sale, though details are still under discussion, said the sources, who requested anonymity due to the confidential nature of the information.

On Tuesday, CNGR announced plans to list in Hong Kong as part of its international expansion strategy. However, its filing with the Shenzhen Stock Exchange did not disclose specifics about the offering. Representatives for CNGR and Morgan Stanley declined to comment, while Huatai had no immediate response.

A key supplier to Tesla Inc., Samsung SDI Co., LG Chem Ltd., and Contemporary Amperex Technology Co. Ltd. (CATL), CNGR joins a growing number of mainland China-listed companies seeking secondary listings in Hong Kong due to onshore regulatory constraints. The company has been publicly traded in Shenzhen since December 2020.

Meanwhile, CATL, the world’s largest EV battery maker, filed on Tuesday for a high-profile Hong Kong IPO, potentially raising over $5 billion. According to the Shanghai Securities News, more than 100 companies are lining up for Hong Kong listings this year.

Despite booming interest in clean energy investments, the EV and battery industries face mounting challenges, including shifting demand, trade tensions, and evolving U.S. energy policies. Reflecting these pressures, CNGR and South Korea’s Posco Holdings Inc. have canceled plans for a nickel refinery, citing changes in the electric vehicle market.