Geely subsidiary sues battery manufacturer Sunwoda for 323 million USD over quality issues
A subsidiary of Geely Holdings has filed a lawsuit against battery manufacturer Sunwoda Electronic Co., seeking 2.31 billion yuan (323 million USD) in damages for alleged battery quality issues.
According to a public announcement released by Sunwoda on December 26, 2025, the company’s subsidiary Sunwoda Power Technology received legal documents from the Ningbo Intermediate People’s Court in Zhejiang Province on December 25, including a civil complaint (Case No: (2025) Zhejiang 02 Civil First Instance No. 1870).
The plaintiff, Viridi E-Mobility Technology (Ningbo) Co., Ltd., alleges that battery cells delivered by Sunwoda between June 2021 and December 2023 had quality problems that resulted in substantial financial losses. Viridi is seeking compensation of 2,313,836,567.29 yuan (323 million USD), plus interest calculated at the market lending rate from the date of filing until actual payment.
Viridi E-Mobility Technology is a wholly-owned subsidiary of Geely Holdings Group, specializing in the research, development, manufacturing, and sales of power batteries, electric drive systems, charging systems, and energy storage systems for new energy vehicles. Their products are used in various premium brands, including Zeekr, Volvo, and Lotus.
This lawsuit follows earlier reports from October 2024, when some Zeekr 001 owners were notified by dealerships that their vehicles’ batteries, which used Sunwoda cells, needed to be recalled and replaced due to quality issues and potential fire risks.
Sunwoda is one of China’s leading power battery manufacturers. In the first half of this year, it produced 9.07 GWh of batteries, ranking sixth among all Chinese battery manufacturers. It supplies batteries to numerous automotive companies, including Li Auto, Xpeng, and Leapmotor, in addition to Geely. Chinese media 36kr has reported that Xiaomi’s forthcoming extended-range electric vehicle will also utilize Sunwoda’s batteries.
While Geely battles Sunwoda over battery quality, another Chinese automaker, Li Auto, is facing resistance from customers over its attempt to promote Sunwoda batteries in its new i6 model.
According to recent reports by Chinese media QQ, Li Auto has been surveying i6 reservation holders about accepting vehicles equipped with Sunwoda batteries instead of the preferred CATL batteries. As an incentive, the company offered an additional two-year or 40,000-kilometer warranty beyond the standard eight-year or 160,000-kilometer coverage.
However, this offer has received a cold response from prospective owners, who view the warranty extension as insufficient compensation. Many customers have expressed concerns about Sunwoda’s battery quality and reliability. Despite Li Auto’s efforts, customer sentiment remains firmly in favor of CATL batteries, which are widely recognized for superior consistency and reliability.
