Sunwoda and Geely resolve their US$330m battery lawsuit
Sunwoda and Geely’s Vremt have settled a lawsuit over defective battery cells, potentially costing Sunwoda between US$72m and US$115m.Summary
Sunwoda Electronic and Geely battery unit Vremt have reached a settlement regarding a lawsuit filed by Vremt over alleged defects in battery cells supplied between June 2021 and December 2023. Vremt initially sought US$330m in damages, but will now withdraw the lawsuit. The settlement is projected to impact Sunwoda’s 2025 net income by US$72m-$115m, with both companies sharing replacement costs for battery packs proportionally.
Vremt, a subsidiary of Geely’s Zeekr brand, supplies batteries to various Geely brands, including Volvo Cars. This dispute arose as Volvo Cars announced a recall of its EX30 model in Australia, the US, and Canada due to risks of overheating and potential fires, with the recalled vehicles identified as using batteries from Sunwoda.
Sunwoda is currently China’s sixth-largest battery manufacturer, possessing 24.35 GWh in installed capacity. The lawsuit’s emergence coincided with Sunwoda’s attempt to list on the Hong Kong exchange, an application which was resubmitted in January 2026 after an initial failure to complete the process within the required timeframe.
(Source：Automotive World)