Faulty Sunwoda cells could have led to a recall of Volvo EX30 items throughout the US, Canada and Australia. By Stewart Burnett
Sunwoda Digital has settled a lawsuit introduced by Geely battery unit Vremt over alleged defects within the battery cells it equipped between June 2021 and December 2023. The settlement is anticipated to impression Sunwoda’s 2025 web revenue attributable to shareholders by anyplace between US$72m-$115m.
On account of the settlement being reached, Vremt will withdraw its lawsuit looking for US$330m in damages. Sunwoda and Vremt agreed to find out the substitute prices for energy battery packs primarily based on precise bills, with each events sharing the incurred quantity proportionally. All processed battery packs will stay the property of Sunwoda’s property.
Vremt, based in 2013 and affiliated with Geely, is definitely a subsidiary managed by Geely model Zeekr, and provides batteries for some Zeekr fashions. It additionally provides to numerous manufacturers underneath the Geely umbrella, together with Swedish automaker Volvo Vehicles.
Notably, Volvo Vehicles introduced plans to recall its EX30 mannequin in a number of markets together with Australia, the US and Canada, citing dangers of overheating that would result in thermal runaway and fires. The US Nationwide Freeway Visitors Security Administration stated final month that the recalled Volvo vehicles have been geared up with batteries from Sunwoda.
Sunwoda ranks as China’s sixth-largest battery producer with 24.35 GWh in put in capability throughout 2025, equal to a 3.17% market share. The lawsuit emerged as Sunwoda started making strikes to checklist on the Hong Kong change, having resubmitted its utility in January 2026 after failing to finish the method inside six months.
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