Sunwoda subsidiary faces $2.3 bn lawsuit over battery quality

Sunwoda Electronic Co., Ltd. announced that its subsidiary, Sunwoda Power Technology Co., Ltd., received a civil complaint and notice of response on December 25, 2025. The lawsuit, filed by Weirui Electric Vehicle Technology (Ningbo) Co., Ltd., concerns a sales contract dispute. The plaintiff alleges that battery cells delivered by Sunwoda Power between June 2021 and December 2023 had quality issues, resulting in losses for the plaintiff.

The plaintiff is seeking damages totaling RMB 2,313,836,567.29, along with interest calculated from the filing date until payment. Additionally, the plaintiff demands that Sunwoda Power bear all appraisal and legal fees incurred. The case has been accepted by the Ningbo Intermediate People's Court in Zhejiang Province, but formal court proceedings have not yet commenced.

Sunwoda stated that due to the uncertainty of the outcome, the impact on the company's current and future profits cannot yet be assessed. The company will perform accounting treatments in accordance with corporate accounting standards as the case progresses and will continue to seek reasonable resolution through communication and negotiation.