Geely's Subsidiary Files $323 Million Lawsuit Over Battery Issues

A subsidiary of Geely Holding Group has filed a lawsuit against Sunwoda Electronic Co., seeking compensation of 2.31 billion yuan, or approximately $323 million USD. The reason is alleged quality issues with battery cells supplied between June 2021 and December 2023. The information is confirmed by an official statement from Sunwoda dated December 26.

The plaintiff is Viridi E-Mobility Technology (Ningbo), wholly owned by Geely. The company claims that defective batteries have led to significant financial losses and demands not only the principal amount of compensation but also interest at the market rate from the date of filing the lawsuit. The case has been accepted for consideration by the Ningbo Intermediate People's Court of Zhejiang Province.

Viridi is engaged in the development and supply of traction batteries and power systems for electric vehicles used in Zeekr, Volvo, and Lotus models. The lawsuit echoes the events of the fall of 2024, when Zeekr 001 owners with Sunwoda batteries were offered battery replacements due to quality-related risks. Against this backdrop, skepticism around Sunwoda is growing: despite large production volumes and cooperation with Li Auto, Xpeng, and other brands, buyers are increasingly preferring CATL batteries, considering them more reliable.

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