- The recall follows a settlement between Geely unit Vremt and battery supplier Sunwoda over battery quality disputes.
- Zeekr will inspect the recalled Zeekr 001 vehicles and replace the power batteries free of charge.
Zeekr is recalling tens of thousands of electric vehicles (EVs) due to thermal runaway risks in power batteries, following a settlement between parent company Geely Auto (HKG: 0175, OTCMKTS: GELYF) and battery supplier Sunwoda (SHE: 300207) over battery quality disputes.
The EV maker will recall a total of 38,277 Zeekr 001 WE Edition vehicles produced between July 8, 2021, and March 18, 2024, starting March 6, 2026, according to an announcement on China's State Administration for Market Regulation (SAMR) website.
Due to manufacturing consistency issues with high-voltage power battery components, some vehicles may experience abnormal increases in internal resistance after long-term use.
This could lead to diminished battery performance and, in extreme cases, thermal runaway of the power battery, posing safety risks.
Zeekr will conduct inspections or remote diagnostics on affected vehicles. For those not yet replaced, the company will provide free battery pack replacements to eliminate safety risks.
Zeekr subsequently issued a statement on Weibo providing further details, noting that its cloud-based monitoring system detected capacity degradation deviating from expectations in certain older Zeekr 001 WE 86 models.
The company has invited affected owners to its stores for inspections through a dedicated campaign and replaced power batteries free of charge for some vehicles.
With upgraded monitoring technology and accumulated sample data, Zeekr identified the issue in certain Zeekr 001 WE 86 Edition vehicles produced between July 2021 and March 2024.
Zeekr said this recall is proactively initiated to ensure driving safety.
Zeekr did not disclose further details regarding the battery issue. The recall follows a settlement reached between Sunwoda's battery division and Geely subsidiary Vremt over a battery quality dispute.
Sunwoda announced last December that its subsidiary, Sunwoda Electric Vehicle Battery Co Ltd (Sunwoda EVB), was sued by Vremt and faced a claim of RMB 2.31 billion ($330 million).
Vremt, founded in 2013 and affiliated with Geely Holding Group, alleged that battery cells supplied by Sunwoda EVB between June 2021 and December 2023 contained quality defects that caused financial losses.
Under the Geely Holding umbrella, Vremt is a company controlled by Zeekr Group and supplies batteries for certain Zeekr models.
On February 6, Sunwoda announced it had reached a settlement with Vremt regarding the battery quality dispute. Vremt will withdraw its lawsuit upon the settlement agreement taking effect.
This is expected to impact Sunwoda's net profit attributable to shareholders by RMB 500 million to RMB 800 million in 2025.
Sunwoda and Vremt agreed to recognize the costs of replacing power battery packs based on actual expenses, with the parties sharing the incurred amounts proportionally, according to Sunwoda's announcement.
All processed battery packs will remain the property of Sunwoda.
($1 = RMB 6.9236)
