In February, CATL filed a lawsuit against Svolt Energy after nine former CATL employees joined two of the latter's affiliated companies.
Chinese power battery giant Contemporary Amperex Technology Co Ltd (CATL, SHE: 300750) has settled its lawsuit against smaller rival Svolt Energy, according to a report in the official Securities Times today.
As part of the settlement, CATL received RMB 5 million ($740,000) in compensation from Svolt Energy, according to the report, adding that the parties received a mediation letter from the Ningde Intermediate People's Court on July 18.
In February, CATL filed a lawsuit against Svolt Energy for unfair competition, according to Jiemian's report at the time.
Between 2018 and 2019, nine former CATL employees joined two affiliated companies of Svolt Energy. CATL argued that the individuals breached their non-compete agreements and therefore demanded damages of RMB 1 million each for breach of contract, according to the report.
CATL had previously filed for arbitration with the labor dispute arbitration committee and received support to claim RMB 1 million from each of the five former employees, according to the report.
Svolt Energy, a power battery company funded by Great Wall Motor in 2018, focuses on cobalt-free battery and solid-state battery research and development, and has established R&D centers in Japan, South Korea, the United States, India, Wuxi, Baoding and Shanghai.
CATL installed 13.4 GWh of power batteries in China in June, ranking first with a 49.6 percent share, according to data released by the China Automotive Battery Innovation Alliance (CABIA) on July 11.
Svolt Energy's installed base in June was 0.57 GWh, ranking seventh with a 2.11 percent market share.
In addition to suing Svolt Energy, at the end of July last year, CATL sued China Aviation Lithium Battery Technology (CALB) for patent infringement, according to China Securities Journal.
CALB subsequently responded by stating that the products it provides to its customers have undergone a thorough risk investigation by a professional intellectual property team and that it believes its products do not infringe the intellectual property rights of others.