Battery manufacturer Sunwoda secures contracts with Li Auto and Xiaomi

Sunwoda Mobility Energy Technology Secures Major Orders and Makes a Mark in the Automotive Battery Market

In the rapidly evolving world of electric vehicles (EVs), Sunwoda Mobility Energy Technology (SEVB) is making a significant impact. The Chinese battery manufacturer, which went public on the ChiNext board in 2011, has secured deals to supply batteries for some of the industry's leading players.

SEVB's contracts with Li Auto and Xiaomi could boost its market position, as both companies are poised to make a significant impact in the EV market. Li Auto, with its focus on solving range anxiety through fast-charging capabilities, aligns well with SEVB's fast-charging technology. Xiaomi's third EV model, "Kunlun," could add 2 GWh annually to SEVB's total battery shipments, signifying a significant increase in volume.

SEVB's third version of its fast-charging battery, introduced at the Beijing Auto Show in 2023, can achieve a peak charging rate of 6C, reaching 80% state of charge (SOC) in just ten minutes. This battery is available in both lithium iron phosphate (LFP) and ternary lithium versions, providing flexibility for various EV models.

The battery industry is undergoing significant shifts, with second-tier battery manufacturers like SEVB finding niche opportunities for growth. The rise of 4C and 5C fast-charging batteries, and the potential of 6C products from competitors like CALB and Eve Energy, signify an evolving market.

SEVB has carved out a niche in the hybrid electric vehicle (HEV) market, maintaining the top spot for three consecutive years according to SNE Research. The company serves over 34 vehicle models across 18 clients, including major players like Li Auto, Xpeng, Leapmotor, Geely (including its Zeekr, Galaxy, and Lynk & Co sub-brands), Dongfeng, GAC, and SAIC.

However, SEVB's market share largely depends on user acceptance of its products and brand. While the company has a strong presence in the HEV market, it faces stiff competition from industry giants like Contemporary Amperex Technology (CATL) and BYD. CATL's batteries could achieve certain charging rates at the cell level, but SEVB can match them, with the only difference being CATL's thermal management design.

SEVB was founded in 1997 and initially focused on battery pack production for consumer electronics, supplying brands like Apple, Huawei, Xiaomi, Oppo, and Vivo. Its entry into the automotive battery market marks a strategic shift, one that could position the company for long-term success.

Despite a relentless price war in the automotive market, SEVB has attracted significant investment from companies like Li Auto, Nio, Xpeng Motors, SAIC Motor, GAC Group, Dongfeng Motor, and investment giants like IDG Capital, Shenzhen Capital Group, and the National Green Development Fund.

As the EV market continues to grow, SEVB is well-positioned to capitalise on the opportunities it presents. With major orders from Xiaomi and Li Auto, as well as its fast-charging technology, SEVB is poised to make a significant impact in the industry.