Volvo EX30 and smart #3 and Zeekr X also affected by this Sunwoda battery fire risk
Tussle between Geely and their battery supplier Sunwoda over the Volvo EX30 battery fire risks. So, in early January 2026, a major legal and safety issue emerged between Geely and its battery supplier Sunwoda Electronic, centered on defective battery cells and global vehicle recalls.
Sunwoda Chairman Wang Wei responded in very recent interview, saying, ‘online rumors are untrue and the battery packs in question were not supplied by Sunwoda but by Volvo’s in-house system factory’.
He further explained that while the battery cells were indeed produced by Shandong Geely Sunwoda Co., Ltd., a joint venture between Geely and Sunwoda, Sunwoda holds only a 30% stake and does not have controlling power.
Meanwhile, on December 26, 2025, Geely’s battery subsidiary, Viridi E-Mobility Technology (VREMT), filed a lawsuit against Sunwoda Power for approximately CNY 2.31 billion (USD323 million) in damages.
The Allegation: Geely claims that battery cells supplied by Sunwoda between June 2021 and December 2023 had “serious quality defects”.
The Impact: These defects allegedly led to slower charging speeds, inaccurate range displays, and abnormal battery capacity degradation in several Geely-affiliated brands.
Financial Scope: The claim amount is significant, nearly equaling Sunwoda’s total net profit for the previous two years (2023–2024).
Following the legal filing, Volvo (owned by Geely) initiated a global safety recall for its EX30 electric SUV in January 2026. The recall addresses a potential defect in high-voltage battery cells that can cause internal short circuits and thermal runaway (fire risk) when charged to high levels.
While the EX30 is the primary focus of the recall, other models using Sunwoda cells, such as the Zeekr 001, Zeekr X, and Smart #3, have also been flagged for potential issues. Owners in several markets (including the UK, US, and Australia) have been advised to limit charging to 70% until a permanent remedy is available.
Interestingly, Sunwoda argues that while they produced the cells, the battery pack’s overall design, management system (BMS), and thermal management were handled by Geely’s subsidiary, VREMT.
They noted that the cells were produced by a joint venture (Shandong Geely Sunwoda Co.) in which Sunwoda holds only a 30% non-controlling stake.
The issue has damaged the reputation of both Sunwoda and Geely’s high-end brands like Zeekr, which previously promoted a record of zero spontaneous fires.
Other automakers, such as Li Auto, have faced customer backlash and requests for warranty extensions because some of their models also use Sunwoda batteries. Sunwoda’s shares plummeted approximately 11%–16% following the disclosure of the lawsuit in late December 2025.
