Sunwoda said it has reached a settlement with Vremt, resolving a battery quality dispute that had weighed on the outlook of the Chinese battery maker as it pursues a Hong Kong listing.
In a filing on Friday, Sunwoda said Vremt will withdraw its lawsuit once the settlement agreement takes effect. The company expects the agreement to reduce its 2025 net income attributable to shareholders by between 500 million yuan ($72 million) and 800 million yuan.
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Sunwoda disclosed in December that its subsidiary, Sunwoda Electric Vehicle Battery Co Ltd, had been sued by Vremt, which was seeking 2.31 billion yuan in damages. Vremt alleged that battery cells supplied between June 2021 and December 2023 had quality issues that resulted in losses.
Founded in 2013 and operating under the umbrella of Geely Holding Group, Vremt is controlled by Zeekr Group and supplies batteries for some Zeekr electric vehicle models.
See also: Sunwoda Faces Lawsuit From Geely-Linked Unit Over Alleged Battery Defects
Under the settlement terms, Sunwoda and Vremt agreed to calculate replacement costs for affected power battery packs based on actual expenses, with both parties sharing the costs proportionally. Sunwoda said all processed battery packs will remain its property.
Sunwoda ranks among China’s largest battery manufacturers. Its power battery installations in the country reached 24.35 gigawatt-hours in 2025, giving it a 3.17% market share and placing it sixth overall, according to data from the China Automotive Battery Innovation Alliance.
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The resolution comes as Sunwoda pushes ahead with plans to list in Hong Kong. The company first submitted a listing application in July 2025, but the materials expired after it failed to complete the process within six months. Sunwoda resubmitted its application last month, saying preparations for the listing are progressing steadily.
