Sunwoda Agrees to Settle Geely Battery Dispute for $88 Million
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Chinese battery-maker Sunwoda Electronic Co. Ltd. has agreed to pay 608 million yuan ($87.6 million) to a unit of Geely Automobile Holdings Ltd. to settle a lawsuit regarding defective batteries, significantly reducing its liability from an initial claim that exceeded 2 billion yuan.
The settlement, announced Friday, involves Vremt, a Geely unit that integrates battery cells from a Sunwoda subsidiary into battery packs for Geely cars. The agreement resolves a high-stakes legal battle stemming from quality complaints that industry insiders have linked to a costly replacement program for Geely’s premium electric vehicle brand, Zeekr.
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- Sunwoda agreed to pay 608 million yuan ($87.6 million) to Geely’s Vremt to resolve a lawsuit over defective batteries, down from an initial claim over 2 billion yuan.
- The settlement, paid over five years, covers issues linked to battery quality in Zeekr vehicles and includes shared costs if official recalls occur.
- Sunwoda’s 2025 net profit will drop 500–800 million yuan due to the settlement; its market share in China is 3.17%.
- Sunwoda Electronic Co. Ltd.
- Sunwoda Electronic Co. Ltd. is a Chinese battery-maker that has agreed to pay 608 million yuan ($87.6 million) to a Geely unit, Vremt, to settle a lawsuit over defective batteries. This significantly reduces their liability from an initial claim exceeding 2 billion yuan. The settlement involves replacing battery packs in Geely cars, specifically identified by industry insiders as the Zeekr 001 model, addressing issues like slow charging and abnormal capacity degradation.
- Geely Automobile Holdings Ltd.
- Geely Automobile Holdings Ltd. is involved in a settlement with battery-maker Sunwoda Electronic Co. Ltd. stemming from defective batteries used in its Zeekr premium electric vehicle brand. A Geely unit, Vremt, sued Sunwoda, and the settlement will see Sunwoda pay 608 million yuan ($87.6 million) in installments. The dispute is linked to battery issues in Zeekr's 001 model.
- Vremt
- Vremt, also known as 威睿电动汽车技术（宁波）有限公司, is a unit of Geely Automobile Holdings Ltd. It integrates battery cells from Sunwoda's subsidiary into battery packs used in Geely cars. Vremt recently settled a lawsuit with Sunwoda regarding defective batteries, receiving 608 million yuan in damages. The dispute arose from quality complaints linked to Geely's premium electric vehicle brand, Zeekr.
- Zeekr
- Zeekr is Geely's premium electric vehicle brand. Zeekr announced a battery replacement program for its 001 model in December 2024 due to issues like slow charging and capacity degradation. This program, potentially costing billions, is linked to a lawsuit between battery supplier Sunwoda and Geely's Vremt unit over defective batteries. Some Zeekr models reportedly used Sunwoda batteries with quality risks.
- December 2024：
- Zeekr announced battery anomalies in its 001 model, including slow charging and abnormal capacity degradation.
- December 2025：
- Vremt sued Sunwoda for damages related to battery quality issues.
- February 9, 2026：
- Sunwoda and Vremt announced a settlement agreement: Sunwoda to pay 608 million yuan, mainly in 2026 with further payments through 2030.
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