Analysis of Geely’s Lawsuit Against Sunwoda Over Battery Quality Issues and Its Impact on Future Orders

Based on the latest news reports, I will analyze the potential impact of Geely’s lawsuit against Sunwoda over battery quality issues on its future order acquisition in detail [1][2][3].

On December 25, 2025, Viridi Electric Vehicle Technology (Ningbo) Co., Ltd., a subsidiary of Geely, filed a lawsuit against Sunwoda Power Technology Co., Ltd., alleging quality issues with the cells delivered between June 2021 and December 2023, and claiming

in damages—equivalent to Sunwoda’s net profit over one and a half years [1][2].

• As early as February 2024, models like Zeekr 001 had already stopped using Sunwoda cells and switched to CATL [1]
• Currently, all Zeekr models use cells from CATL or Quzhou Jidian (under Geely Holding) [1]
• Geely has fully phased out Sunwoda batteries from its 2024 model-year vehicles [3]

• Affected by the lawsuit news, Sunwoda’s stock price plummeted
  11.39%
  on December 29, with a market value evaporation of over 6 billion yuan [1][2]
• Persistent market concerns have impacted investor confidence

Sunwoda’s customer base includes major automakers such as Li Auto, Xpeng, Xiaomi, Volkswagen, and Dongfeng [3]. This case may trigger the following chain reactions:

• Li Auto
  : As an important customer and shareholder of Sunwoda (invested over 800 million yuan and established a joint venture factory), it faces dual tests of technical risks and commercial interests [3]
• Other automakers
  : May re-evaluate their cooperative relationships with Sunwoda and carefully consider future order allocation
• Potential customers
  : May prioritize other suppliers when selecting partners for new models

Sunwoda Power submitted a Hong Kong IPO application in July 2025. This major lawsuit may lead to [3]:

• More stringent review of the listing application by regulatory authorities
• Increased risk assessment of the company by investors
• Forced adjustment of the IPO valuation logic

According to data from the China Automotive Power Battery Industry Innovation Alliance, Sunwoda’s installed capacity in the first three quarters of 2025 was 16.49 GWh, ranking sixth with a market share of 3.35% [2]. This incident may affect its subsequent market expansion capabilities

• Existing customer orders may be temporarily maintained, but it will be more difficult to obtain new orders
• Stock price volatility may continue; attention should be paid to the progress of the lawsuit
• Brand image restoration will take time

• If the lawsuit is lost, huge compensation will affect the company’s cash flow and development investment
• Customer structure may change significantly
• Competitors may take the opportunity to seize market share

• Restoring customer trust is key
• The technical quality control system needs a comprehensive upgrade
• Living space may narrow under the squeeze from giants like CATL and BYD

Geely’s lawsuit against Sunwoda over battery quality issues

on Sunwoda’s future order acquisition. In the short term, Geely-related orders have been confirmed lost; in the medium term, other automakers may adopt a wait-and-see attitude or adjust their cooperation strategies; in the long term, if handled improperly, Sunwoda may slip from the second echelon of power battery suppliers.

Sunwoda’s most urgent tasks at present are: actively respond to the lawsuit, strengthen communication with existing customers, prove its quality control capabilities, and repair its damaged brand reputation.

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[1] China Finance Online - Behind the sky-high claim: Why Geely sued Sunwoda (http://auto.cnfol.com/cheshidongtai/20251231/31906794.shtml)

[2] CLS - Accused of cell quality issues and claimed over 2.3 billion yuan, Sunwoda’s market value shrank by over 6 billion yuan in a single day (https://www.cls.cn/detail/2242884)

[3] Sina Finance - Market value plummeted by 6 billion yuan! Geely sues battery supplier Sunwoda (https://finance.sina.com.cn/stock/relnews/cn/2025-12-30/doc-inhequpe7061472.shtml)