Detroit City Wire

Zach Mottl, Chairman of the Coalition for a Prosperous America, has raised concerns over the involvement of JPMorgan and Bank of America in CATL's Initial Public Offering (IPO). He urged Congress to prevent U.S. financial institutions from supporting entities linked to the Chinese Communist Party. This statement was made on X.

"Why would they stop," said Zachary J Mottl. "Now @BankofAmerica and @jpmorgan made big $ on CATL IPO. Highly probable they do a few more deals for the CCP unless Congress takes action to halt this absurd business of funding adversaries and helping them acquire capability."

The participation of U.S. financial institutions in CATL's IPO has led to significant national security concerns. According to the Financial Times, CATL was placed on a Pentagon watchlist due to alleged ties to the Chinese military. This prompted U.S. lawmakers to urge JPMorgan and Bank of America to withdraw from the deal. Despite these warnings, both banks proceeded with underwriting the IPO, highlighting ongoing tensions between financial interests and national security considerations.

CATL's Hong Kong IPO raised approximately $4.6 billion, marking it as the largest global IPO of 2025. As reported by the Financial Express, these funds are intended for expanding CATL's operations in Hungary and enhancing its global electric vehicle battery presence. This substantial capital influx underscores CATL's strategic push into international markets.

Investment banks involved in CATL's IPO, including JPMorgan and Bank of America, accepted underwriting fees significantly below industry norms. According to Reuters, these banks earned fees well below standard rates, reflecting a strategic choice to participate in a high-profile deal despite lower immediate financial returns. This move indicates the banks' prioritization of long-term relationships and market positioning over short-term profits.

Mottl serves as the Chairman of the Coalition for a Prosperous America (CPA) and is also the President of Atlas Tool Works, a manufacturing company based in Illinois. He has been actively involved in advocating for policies that support domestic manufacturing and address trade imbalances. His leadership roles reflect a commitment to strengthening American industry and economic sovereignty, according to CPA's official website.