Sunwoda EVB Pursues IPO, Green Initiatives

Sunwoda Electronic Co. launched its electric vehicle (EV) battery business in 2008, joining China’s cadre of suppliers for the new-energy vehicle (NEV) market. Now, Sunwoda Electric Vehicle Battery (EVB) Company ranks as China’s sixth-largest EV battery maker—and its plan for growth is clear.

Offering a portfolio of EV battery cells (BEV, HEV and PHEV), modules, packs and battery management systems, Sunwoda in October hired a brokerage, Citic Securities, to receive training prior to formally filing an initial public offering (IPO). China requires companies seeking IPOs to learn applicable laws and rules prior to listing. The EV battery unit was valued at $4.9 billion at the time, according to Deal Street Asia.

In February 2023, Sunwoda’s battery business sought to raise $580 million from investors, according to Bloomberg, which noted that “EV battery manufacturers in China are attracting billions of dollars as automakers are looking to diversify their supply.”

Sunwoda counts automakers Volvo Car AB, Mercedes, Xpeng Inc., Guangzhou Automobile Group and Dongfeng Motor Co. among its customers. The company has its headquarters in Shenzhen, as does EV battery maker BYD, amid 24,000 new-energy and digital-energy enterprises, according to the China Daily. The city is striving to become a new-energy vehicle “supercharging city,” and Sunwoda clearly embraces that goal. In April, Sunwoda launched a supercharging battery that can keep an NEV running 1,000 kilometers (621 miles) and be recharged from 20% to 80% in 10 minutes, according to the January article.

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Beyond China, Sunwoda in July revealed plans to build an EV battery factory in Hungary, with an initial investment up to $275 million.

In an August promotional video, Sunwoda touted a range of its operational successes and assets, including:

Sunwoda EVB had a big presence at the Japan Mobility Show 2023. Credit: Sunwoda

Year of progress

2023 saw plenty of success for Sunwoda, with the company’s Yiwu New Energy Power Battery Production Base officially launching its first battery cell and PACK on Dec. 9. The project, a joint venture between Sunwoda EVB and the Yiwu Municipal Government, is the result of a total investment of 21.3 billion yuan ($2.93 billion), the company said.

“The project plans to produce 5 billion watt-hours of new energy power batteries annually,” according to the company’s website. “From factory planning and construction to equipment installation, research and development, and achieving the corresponding milestones on schedule, the base has taken only 12 months, setting a new speed record for Yiwu and demonstrating the Sunwoda’ strength of Yiwu.”

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Annual output value of the project is projected at 35 billion yuan ($4.9 billion), while employing more than 6,000. The venture “will establish a connection between the manufacturing end and the industrial chain, form an industrial chain strategic alliance, and make a significant contribution to Zhejiang Province in building a world-class automotive industry cluster.”

Carbon reduction in action

Meanwhile, Sunwoda shared its carbon-reduction experience during the 28^th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP28) in Dubai, which ran from Nov. 30 to Dec. 12. Vice President Liang Rui represented the company’s green and low-carbon applications during the Shenzhen session at the event’s China Pavilion.

In 2023, Liang explained, Sunwoda initiated its Supply Chain Climate Action Plan to promote emissions reductions by implementing 30 measures. The initiative came on the heels of the company’s 2021 Dual Carbon Declaration and 2022’s Sunwoda Carbon Peak and Carbon Neutrality Action Plan.

From Oct. 25–Nov. 5, Sunwoda EVB showcased its products and technology and connected with its partners at the Japan Mobility Show 2023. During the event, Nissan Motor representatives expressed their desire for expanded opportunities to promote EV products. Sunwoda also held a signing ceremony with Power-x, Japan’s largest energy storage battery company. And in September exhibited at the IAA Mobility Munich 2023 event.

Mingwang Wang and his brother, Wei, are cofounders of Sunwoda Electronic. According to the company’s 2022 annual report, dated April 2023, “the company's power battery business has been recognized by many well-known domestic and foreign automakers for its technical strength and development potential through dedicated investment and intensive cultivation in the early stage, and the maturity and stability of its products have been further verified by the market. The management system and operation system of power battery have continuously passed the strict review of domestic and foreign high-end customers.”

The company’s power battery shipments totaled 12.11 gigawatt hours in 2022 — a year-over-year increase of 332.56%, according to the report.

EV Battery Leaders is a series of occasional features profiling the top makers of EV batteries worldwide.