Chinese battery manufacturer Sunwoda (SHE: 300207) faces a lawsuit from a Geely subsidiary over battery cell quality issues -- a rare case in China's electric vehicle (EV) sector.
Sunwoda's subsidiary, Sunwoda Electric Vehicle Battery Co Ltd (Sunwoda EVB), was sued by VREMT -- founded in 2013 and affiliated with Geely Holding Group, which is seeking compensation of RMB 2.31 billion ($330 million), according to an exchange filing.
VREMT alleges that battery cells supplied by Sunwoda EVB between June 2021 and December 2023 contained quality defects that caused losses, according to the announcement.
The lawsuit has not yet been heard in court, and the outcome remains uncertain, Sunwoda said, adding that it is currently unable to assess the impact on its current or future profits.
Sunwoda said that its current production and operations remain normal, and it will conduct corresponding accounting treatments based on the case's progress.
The company is actively seeking a reasonable resolution, strengthening communication and negotiations with the relevant party to strive for a prompt and proper settlement of the lawsuit, it said.
Sunwoda's announcement did not provide further details regarding the batteries supplied to VREMT.
Under the Geely Holding umbrella, VREMT is a subsidiary controlled by Zeekr Group and supplies batteries for multiple Zeekr vehicle models.
Sunwoda ranks among China's largest battery manufacturers, with a November battery installation volume of 2.51 GWh in China, according to data from the China Automotive Battery Innovation Alliance (CABIA).
The company held a 2.68 percent market share in China's EV battery sector in November, ranking seventh in the market.
| Company | Installations (GWh) | Market share (%) | Share vs Prev Month |
|---|---|---|---|
| CATL | 40.87 | 43.71% | +0.71 |
| BYD | 19.04 | 20.36% | -0.93 |
| CALB | 5.96 | 6.37% | -0.61 |
| Gotion High-tech | 5.89 | 6.30% | -0.34 |
| Eve Energy | 3.59 | 3.84% | -0.04 |
| Rept Battero Energy | 2.98 | 3.19% | +0.56 |
| Sunwoda | 2.51 | 2.68% | -0.66 |
| Svolt Energy | 2.45 | 2.62% | -0.09 |
| LG Energy Solution | 2.41 | 2.58% | +1.29 |
| Energee | 2.24 | 2.39% | +0.43 |
| Zenergy | 1.71 | 1.83% | -0.56 |
| Greater Bay Technology | 0.65 | 0.70% | +0.19 |
| Cornex | 0.57 | 0.61% | -0.08 |
| Yinpai Battery | 0.56 | 0.60% | +0.26 |
| Yuanhang Genlead | 0.54 | 0.58% | +0.07 |
($1 = RMB 7.007)
