Chinese battery manufacturer Sunwoda is rapidly raising the number of its clients that seek powertrain solutions for HEVs and BEVs. The company has recently announced that major German carmaker Volkswagen is now one of its many partners. This event has come after Sunwoda has secured battery orders from other domestic and foreign carmakers including Nissan, Dongfeng (including Dongfeng Liuzhou Motor and DMCPV), GAC, etc.
On November 6, Sunwoda disclosed that its subsidiary Sunwoda EVB has become a supplier to Volkswagen for an HEV project. Under the agreement between the two parties, Sunwoda EVB will be providing Volkswagen with a HEV power battery pack.
Volkswagen is not only the most well-known carmakers in the world but also the most aggressive in vehicle electrification within the automotive industry. Factors that are driving its vehicle electrification efforts include government policies for cutting emissions and the desire to improve its corporate image.
Commenting on its success in entering Volkswagen’s supply chain for HEVs, Sunwoda said this event is an indication of the considerable progress that it has made in the development of powertrain solutions that are specific for this vehicle type. Sunwoda added that this event is another milestone in its efforts to form close business relations with the world’s top carmakers and automotive brands. Moreover, working with Volkswagen will undoubtedly improve its overall competitiveness in the markets for HEV and BEV power batteries.
Sunwoda and Volkwagen will be discussing the details of the HEV project at a later time. Regarding the HEV power battery pack, the procurement quantity for this product has yet to be formally determined. Sunwoda also said the effect of this deal on its financial results for 2022 is unclear.
According to the available information, Sunwoda’s HEV power battery cells have now entered their third generation and are boasted to have the following performance-related advantages: high power output, ability to activate at extremely low temperature, strong energy feedback, and very long cycle life. Sunwoda has especially touted that it is ahead of its competitors in the HEV power battery market with respect to power output and cycle life. The company has developed a technology to prevent build-up of lithium on electrodes and thus provide real-time protection for battery cells as they operate.
Additionally, Sunwoda’s HEV power batteries support 60C charging and 70C charging within the normal operating temperature range. Sunwoda can also meet the different needs of individual customers through cell standardization and system modularization.
Sunwoda currently has the capability to provide a stable supply of HEV power batteries to many customers. In addition to foreign carmakers such as Nissan and Renault, Sunwoda has also started to collaborate with most of the domestic carmakers that have demand for HEV power batteries. Shipments of HEV power batteries to domestic customers have already begun this year as well.
Sunwoda continues to capture large orders for BEV and HEV batteries during this year. On March 1, Sunwoda received an order for batteries used in a SAIC Motor’s HEV project titled ZS12MCE. Then, on July 6, the company disclosed that SAIC Maxus Automotive had requested services from Sunwoda EVB for supporting the implementation of a BEV project. Specifically, Sunwoda EVB will be supplying power battery cells to SAIC Maxus Automotive.
In the BEV power battery market, Sunwoda continues to commit resources into R&D so as to get ahead in the competition for solutions that offer faster charging and longer driving range. On September 3, Sunwoda EVB launched the SFC480, a “super-fast-charging” battery for high-end BEVs. The SFC480 can be charged at rate of up to 480kW, and it offers a 400km range for a 10-minute charge. When fully charged, the SFC480 has a range of up to 700km. Moreover, under a temperature as low as minus 20 degrees Celsius, the SCF480 can still keep more than 85% of its stored energy. Therefore, this solution is suitable for a wide range of climates and environments within China. Sunwoda claims that the next-generation solution that follows the SFC480 will be able to extend the driving range to 1,100km.
A recent third-party research report stated that the widening adoption of fast-charging batteries among BEVs has also led to rising penetration rate for charging piles that support the fast-charging capability. Sunwoda expects a rapid pace of market growth for battery products such as the SCF480 thanks to the increasing acceptance of fast-charging solutions among domestic and foreign carmakers.
A partial market survey also finds that Sunwoda’s solutions have been incorporated into BEV platforms under Dongfeng Motor (i.e., CEM5EV and E70), Geely Auto (i.e., PMA), and SAIC Motor (i.e., ZS12). At the same time, Sunwoda is cooperating with many other carmakers at home and abroad. Apart from the previously mentioned carmakers and automotive brands, other Sunwoda’s well-known partners include e-GT, SGMW, etc.
Sunwoda’s power battery shipments for the first half of 2022 came to 3.95GWh. Sunwoda’s realized revenue from power battery sales reached RMB 4.2 billion for the same period, showing a massive year-on-year growth rate of 631.92%. For the first three quarters of 2022, Sunwoda power battery installations totaled 4.84GWh. Domestically, Sunwoda is ranked fifth in terms of power battery installations. Its position actually shifts up to fourth place if the ranking is based solely on installations of ternary power batteries.
With regard to financial performance, Sunwoda achieved a new record high for single-quarter revenue in the third quarter of 2022 with RMB 14.87 billion and a year-on-year growth rate of 50.14%. For the first three quarters of 2022, Sunwoda’s revenue also rose by 43% year on year to a new record high of RMB 36.58 billion.
This article is a translation of a Chinese article posted by TrendForce. It contains information that is either sourced from other news outlets or accessible in the public domain. Some Chinese names are transcribed into English using Hanyu Pinyin.