Shares of the largest electric vehicle batteries producer in the world jumped after debut, Bloomberg reports. It proves that investors bet on growing demand for next-generation cars.

Stocks of Contemporary Amperex Technology Ltd. (CATL) went up by 44% to 36,20 yuan in Shenzhen, China. Market value of the company is $12,3 billion. Manufacturer sold 10% stake for its first IPO at 25,14 yuan per share.

Investors are confident that CATL will be able to bypass competitors including Panasonic Corp. and continue winning new orders from auto producers that actively invest into electric cars. Volkswagen AG, Nissan Motor Group, Hyundai Motor Co. and BMW AG are already among CATL’s clients.

However, CATL profitability dropped by 9,5% to 35% last year. The company reduced prices to gain market share after government reduced subsidies for electric cars.

CATL is planning to use money obtained from shares sale to finance new factory for 24 gigawatt-hour, as well as to develop technologies for next-generation batteries. The company is also close to make a decision on building a plant in Germany.