Li Auto and Xiaomi have signed battery agreements with Sunwoda, securing supply for their electric vehicles and electronic devices.

Sunwoda Mobility Energy Technology Secures Major Deals and Expands Market Presence

Sunwoda Mobility Energy Technology (SEVB), a leading battery manufacturer, has secured significant deals that are set to propel its growth in the electric vehicle (EV) industry. The company will supply batteries for Volkswagen's entire overseas hybrid series, Volvo's GPA series, Li Auto's M7 and M8 models, Xiaomi's third EV model named "Kunlun," and Leapmotor.

Established in 1997, SEVB initially focused on battery pack production for consumer electronics, supplying brands like Apple, Huawei, Xiaomi, Oppo, and Vivo. Today, it serves over 34 vehicle models across 18 clients, including major players like Li Auto, Xpeng, Leapmotor, Geely, Dongfeng, GAC, and SAIC.

SEVB's SFC480 battery was installed in the Xpeng G9 in 2022, marking a significant milestone. The company has maintained the top spot in the hybrid electric vehicle (HEV) market for three consecutive years according to SNE Research.

The dynamics of the battery industry can change rapidly with just one or two major orders, and SEVB's path resembles those of industry giants. Winning Xiaomi's orders could significantly increase SEVB's shipment volumes, as Xiaomi's SU7 demonstrated massive demand. A single model from Xiaomi could add 2 GWh annually to SEVB's total battery shipments, marking a substantial boost.

Li Auto, with monthly sales of 30,000 units, plans to launch all-electric models, including the Li Mega and three pure electric SUVs (M7, M8, and M9), in the first half of 2025. Li Auto's strategy focuses on solving range anxiety through fast-charging capabilities, which aligns well with SEVB's fast-charging technology.

SEVB's diverse but non-elite customer base results in high volumes but low margins. The company's market share largely depends on user acceptance of its products and brand. The new battery introduced by SEVB this year can achieve a peak charging rate of 6C, reaching 80% state of charge (SOC) in just ten minutes.

In 2014, SEVB established a subsidiary, SEVB, which focuses on both pack and cell manufacturing. The company went public on the ChiNext board in 2011 and has since attracted significant investment from companies such as 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.

Despite Li Auto deploying SEVB's batteries in the Air variant of its L8 model last year, annual sales barely exceeded 10,000 units. CATL's batteries can achieve certain charging rates at the cell level, while SEVB can match them, with the only difference being CATL's thermal management design.

As of June 2023, a final financing round valued SEVB at RMB 36 billion, although its ChiNext listing application has since expired. SEVB's market presence continues to grow, and with its focus on innovation and quality, it is well-positioned to capitalize on the growing demand for electric vehicle batteries.