Geely Subsidiary Sues Sunwoda EV for RMB 2.314 Billion in Damages Over Defective Battery Cells

[Corporate Litigation] Geely's subsidiary, VRE Electric Vehicle Technology (Ningbo) Co., Ltd., has filed a lawsuit against Sunwoda EV, seeking RMB 2.314 billion in compensation due to quality issues with battery cells.

⚡ Core Development: RMB 2.314 Billion Claim Directly Targets Battery Cell Defects

The plaintiff, VRE Electric Vehicle Technology (Ningbo) Co., Ltd., alleges that between June 2021 and December 2023, battery cells delivered by Sunwoda EV suffered from severe quality defects. These defects caused problems—including slow charging and rapid capacity degradation—in vehicles built on the PMA platform, such as the Zeekr 001 WE86, prompting battery pack replacement campaigns for end users.

🔍 Strategic Underpinning: Battery Safety Becomes Automakers’ Non-Negotiable Procurement Priority

Although Sunwoda claims its operations remain normal, a ruling against it would severely damage its market reputation. This case highlights automakers’ unprecedented emphasis on quality control of battery cell suppliers, potentially accelerating industry consolidation in the power battery sector.

💡 Industry Impact: Supply Chain Trust Mechanisms Face Restructuring

The case has been accepted by the Ningbo Intermediate People's Court (Case No. (2025) Zhe 02 Min Chu 1870) but has not yet gone to trial. Industry observers believe this high-value claim may prompt OEMs to reassess their strategies for secondary and tertiary battery cell suppliers, strengthening quality control clauses and mechanisms for liability enforcement.