Shares of Chinese lithium-battery developer Sunwoda Electronic fell sharply after the company disclosed it is facing a lawsuit over alleged quality issues in its battery cells. The lawsuit, filed by Ningbo-based Viridi E-Mobility Technology, an affiliate of new energy vehicle maker Zeekr and backed by Geely Auto Group, seeks more than 2.3 billion yuan (approximately 320 million USD) in damages. Sunwoda’s stock slid as much as 16 percent intraday before settling down 11.4 percent at 26.36 yuan (around 3.80 USD).
According to Sunwoda’s December 26 disclosure, the case has not yet proceeded to trial, and the final outcome remains uncertain. The company said it is actively engaging with the plaintiff to reach a reasonable solution through discussion and negotiation. Sunwoda noted that, given the unresolved status of the lawsuit, it is difficult to gauge any direct impact on its current or future profitability.
The amount claimed in the lawsuit is notable when compared with Sunwoda’s recent financial performance. Combined net profit attributable to shareholders for 2023 and 2024 totaled about 2.5 billion yuan—roughly equivalent to the compensation being sought.
The dispute concerns battery cells supplied for Zeekr’s luxury all-electric 001 model, which recorded sales of over 70,000 units in 2022. The WE86 variant accounted for more than 60 percent of those deliveries. As deliveries ramped up, some owners reported slower charging rates and inaccurate state-of-charge readings.
In response to early reports, Zeekr launched a battery health monitoring campaign, finding that a small number of high-mileage 001 WE86 vehicles experienced occasional slower charging and abnormal capacity degradation curves. While these issues fell below warranty replacement criteria, Zeekr offered free battery pack replacements to affected users. In the first half of this year, several owners received after-sales notifications for inspections, and some packs were reportedly replaced with units labeled by another battery supplier.
Source: Yicai
