Sunwoda and Geely resolve their US$330m battery lawsuit

Sunwoda Electronic has settled a lawsuit brought by Geely battery unit Vremt over alleged defects in the battery cells it supplied between June 2021 and December 2023. The settlement is expected to impact Sunwoda’s 2025 net income attributable to shareholders by anywhere between US$72m-$115m. 

As a result of the settlement being reached, Vremt will withdraw its lawsuit seeking US$330m in damages. 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’s property. 

Vremt, founded in 2013 and affiliated with Geely, is actually a subsidiary controlled by Geely brand Zeekr, and supplies batteries for some Zeekr models. It also supplies to various brands under the Geely umbrella, including Swedish automaker Volvo Cars. 

Notably, Volvo Cars announced plans to recall its EX30 model in several markets including Australia, the US and Canada, citing risks of overheating that could lead to thermal runaway and fires. The US National Highway Traffic Safety Administration said last month that the recalled Volvo cars were equipped with batteries from Sunwoda.

Sunwoda ranks as China’s sixth-largest battery manufacturer with 24.35 GWh in installed capacity during 2025, equivalent to a 3.17% market share. The lawsuit emerged as Sunwoda began making moves to list on the Hong Kong exchange, having resubmitted its application in January 2026 after failing to complete the process within six months.