BUSINESS

Geely Unit Sues Battery Supplier Sunwoda For $329 Million Over Alleged Defects

Published: Dec. 29, 2025 3:30 p.m. GMT+8

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Geely Automobile Holdings Ltd. has filed a lawsuit against one of its battery suppliers, Sunwoda Electronic Co. Ltd., for 2.31 billion yuan ($329 million) over alleged quality issues that led to significant losses.

Shenzhen-listed Sunwoda (300207.SZ) disclosed the lawsuit in a filing Friday, stating it received the court documents from the Ningbo Intermediate People’s Court the day before. The case has yet to go to trial.

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Geely sued battery supplier Sunwoda for 2.31 billion yuan ($329 million) over quality issues with battery cells supplied from June 2021 to December 2023.
Sunwoda’s net profit in 2024 was 1.47 billion yuan, less than the claim, and the dispute likely relates to Zeekr brand vehicles, some of which had battery problems requiring costly replacements.
Battery quality is a significant risk for EV makers, affecting costs, safety, and reputation; similar issues hit Li Auto in 2024.

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Who’s Who

Geely Automobile Holdings Ltd.: Geely Automobile Holdings Ltd. has sued Sunwoda Electronic Co. Ltd. for 2.31 billion yuan ($329 million) over alleged battery quality issues. The disputed cells were supplied to Vremt, a joint venture of Zeekr and Geely Automobile Group Co. Ltd. The lawsuit likely stems from battery replacements for Zeekr 001 vehicles that experienced charging and degradation problems.

Sunwoda Electronic Co. Ltd.: Sunwoda Electronic Co. Ltd. (Sunwoda) is a Shenzhen-listed battery supplier. It is being sued by Geely Automobile Holdings Ltd. for 2.31 billion yuan ($329 million) over alleged quality issues with battery cells supplied to Vremt. The disputed batteries were supplied between June 2021 and December 2023. The lawsuit's claim exceeds Sunwoda's full year of earnings.

Geely Automobile Group Co. Ltd.: Geely Automobile Group Co. Ltd. is a subsidiary of Geely Automobile Holdings Ltd. It jointly owns Vremt, a powertrain and battery-systems provider, with Zeekr. Geely Automobile Group is involved in a lawsuit against Sunwoda Electronic Co. Ltd. over alleged battery quality issues.

Zeekr: Zeekr is a subsidiary of Geely Automobile Holdings Ltd. It is one of the parties involved in a lawsuit against battery supplier Sunwoda Electronic Co. Ltd. over alleged quality issues with battery cells supplied between June 2021 and Dec. 2023. These issues are believed to be linked to the Zeekr 001 vehicles, which experienced problems like slower charging and abnormal battery degradation. Zeekr incurred significant costs replacing battery packs for affected cars.

Li Auto: Li Auto recalled a batch of its MEGA electric vehicles due to a fire incident. The issue was linked to insufficient corrosion resistance in the battery coolant, potentially causing thermal runaway. This recall cost Li Auto approximately 1.1 billion yuan, though the portion covered by suppliers was not specified. The battery cells themselves, supplied by CATL, were deemed to be operating normally.

CATL: The article mentions **CATL** as the supplier of battery cells for Li Auto's MEGA electric vehicle model. It notes that while a batch of MEGA vehicles was recalled due to a fire incident, Li Auto stated that the CATL-supplied cells themselves were operating normally at the time of the incident.

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What Happened When

June 2021 - December 2023：: Sunwoda’s power-battery unit supplied the disputed battery cells to Vremt.

2024：: Sunwoda reported net profit of 1.47 billion yuan.

December 2024：: Zeekr announced that some Zeekr 001 vehicles experienced issues such as slower charging speeds and abnormal battery-capacity degradation, prompting the company to replace battery packs for affected cars at no cost to owners.

First three quarters of 2025：: Sunwoda reported net profit of 1.41 billion yuan.

Third quarter of 2025：: Li Auto disclosed in its earnings that the recall cost about 1.1 billion yuan.

By Friday, 2025：: Sunwoda disclosed in a filing it had received court documents from the Ningbo Intermediate People’s Court the day before regarding Geely Automobile Holdings Ltd.'s lawsuit.