- Sunwoda expects the impact on its 2025 net income to range from RMB 500 million ($72 million) to RMB 800 million.
- Sunwoda and Vremt agreed to determine the cost of replacing power battery packs based on actual expenses and share the burden proportionally.
Sunwoda (SHE: 300207) has settled a battery quality dispute with Geely subsidiary Vremt, resolving a major issue that had cast a shadow over the battery maker's outlook.
Sunwoda announced the progress in an exchange filing on Friday, stating Vremt will withdraw its lawsuit once the settlement agreement takes effect.
This is expected to impact Sunwoda's 2025 net income attributable to shareholders by RMB 500 million ($72 million) to RMB 800 million, according to the announcement.
Sunwoda disclosed in December last year that its subsidiary Sunwoda Electric Vehicle Battery Co Ltd (Sunwoda EVB) was sued by Vremt, which sought RMB 2.31 billion ($330 million) in damages.
Vremt, founded in 2013 and affiliated with Geely Holding Group, alleged that battery cells supplied by Sunwoda EVB between June 2021 and December 2023 had quality issues that caused losses.
Operating under Geely Holding's umbrella, Vremt is a subsidiary controlled by Zeekr Group and supplies batteries for some Zeekr models.
According to Friday's announcement, Sunwoda and Vremt agreed to determine the replacement costs for power battery packs based on actual expenses, with both parties sharing the incurred amount proportionally.
All processed battery packs will remain the property of Sunwoda.
Sunwoda ranks among China's largest battery manufacturers. Its power battery installations in China were 24.35 GWh in 2025, securing the sixth position with a 3.17% market share, according to data from the China Automotive Battery Innovation Alliance (CABIA).
| Company | Installations (GWh) | Market share (%) | Share vs 2024 |
|---|---|---|---|
| CATL | 333.57 | 43.42% | -1.67 |
| BYD | 165.77 | 21.58% | -3.17 |
| CALB | 53.61 | 6.98% | +0.29 |
| Gotion High-tech | 43.44 | 5.65% | +1.07 |
| Eve Energy | 31.61 | 4.11% | +0.69 |
| Sunwoda | 24.35 | 3.17% | +0.28 |
| Svolt Energy | 20.71 | 2.70% | -0.49 |
| Rept Battero Energy | 19.50 | 2.54% | +0.31 |
| Zenergy | 15.93 | 2.07% | +0.27 |
| Energee | 15.08 | 1.96% | +0.26 |
| LG Energy Solution | 13.75 | 1.79% | +0.39 |
| Yinpai Battery | 6.29 | 0.82% | +0.41 |
| Cornex | 5.39 | 0.70% | +0.56 |
| Yuanhang Genlead | 4.30 | 0.56% | +0.54 |
| Do-Fluoride | 4.30 | 0.56% | -0.01 |
The lawsuit comes as Sunwoda advances its efforts to list in Hong Kong.
It submitted its Hong Kong listing application in July 2025 but failed to list within six months, resulting in the application materials expiring.
Last month, Sunwoda resubmitted the application, stating it is steadily progressing with preparatory work.
($1 = RMB 6.9394)
