Sunwanda, a Chinese battery manufacturer, has reached a settlement with Viridi E-Mobility Technology (VREMT), a subsidiary of automotive giant Geely, in a high-profile lawsuit involving a claim of 2.314 billion yuan (323 million USD) over alleged battery cell quality issues. The agreement, announced by Sunwanda on February 6, 2026, will see Viridi withdraw its lawsuit.
The dispute originated in December 2025 when Viridi E-Mobility Technology filed a lawsuit with the Ningbo Intermediate People’s Court in Zhejiang Province. Viridi alleged that battery cells supplied by Sunwanda Power between June 2021 and December 2023 for the Zeekr 001 WE86 version had quality defects, causing Viridi to incur significant losses. While Sunwanda supplied the battery cells, Viridi was responsible for the in-house development and assembly of the battery packs (PACK) and Battery Management Systems (BMS).
Under the terms of the settlement agreement, both parties acknowledged that the dispute stemmed from “partial performance issues” during the execution of their sales contract. Sunwanda has agreed to pay Viridi E-Mobility Technology an additional 608 million yuan (89 million USD), after accounting for amounts already covered by Sunwanda.
Furthermore, any actual costs incurred after the end of 2025 related to the issue will be shared proportionally as per the agreement. All affected battery packs will become the property of Sunwanda following the resolution. Viridi will formally withdraw its lawsuit once the settlement agreement becomes effective.
In a joint statement, both companies emphasized their commitment to resolving the dispute amicably, highlighting its importance for safeguarding consumer rights, maintaining the brand image of the new energy vehicle (NEV) industry, and fostering healthy industry development and supply chain collaboration.
They stated that the resolution was achieved through “full communication and exchange” based on principles of “seeking common ground while reserving differences.” The companies expressed their intention to use this settlement as an opportunity to strengthen communication and cooperation, improve their collaboration mechanisms, and contribute responsibly to the robust growth of the NEV industry chain.
Sunwanda announced that, after considering existing warranty provisions, the realizable value of the battery packs involved, and potential future related expenses, the settlement is expected to impact its net profit attributable to shareholders for the 2025 fiscal year by an estimated 500 million to 800 million yuan (71 million to 114 million USD).
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