Research and analysis of Chinese lithium-ion battery manufacturers: Sunwoda Electronic Co., Ltd.
Market Position/Overview: 欣旺达 (Sunwoda) is a battery manufacturer founded in Shenzhen in 2008 (the predecessor company was founded in 1997).
The company originally grew through the business of small lithium polymer battery packs for mobile phones and notebook PCs.
In recent years, the company has entered the EV battery business (欣旺达電動汽車電池公司) in earnest, and has grown to the point where it is now one of the top 10 companies in China in terms of the volume of automotive batteries installed in vehicles.
As of the first half of 2024, the company’s domestic market share will be around 3%, ranking 7th in the country.
The company is making a spectacular transition from a major smartphone battery manufacturer to an automotive battery player.
Main products and applications: Sunwoda’s traditional core product is lithium-ion battery packs for smartphones.
Sunwoda supplies battery modules to major Chinese smartphone manufacturers such as Huawei, OPPO and Xiaomi, and at one time was second only to ATL (TDK) in global market share.
While batteries for electronic devices remain an important business, the company is rapidly expanding its hybrid electric vehicle/electric vehicle (EVB) battery business.
The company is particularly strong in batteries for HEVs (Hybrid Electric Vehicles), and it is reported that many of these batteries are used in HEVs made by Chinese manufacturers.
Most of our products are assembled in-house in the form of battery modules and packs, using cells manufactured by other companies, and we have recently begun mass production of our own LFP and NCM cells.
In terms of applications, battery packs for passenger car EVs, PHEVs and HEVs are a growth area and are becoming a new revenue stream for the company.
In addition, batteries for consumer electronics (smartphones, notebooks, power tools, etc.) continue to account for a large percentage of sales.
Key customers and partners: Sunwoda’s automotive battery business has established relationships with several leading automakers.
In China, Sunwoda has a strong relationship with Dongfeng Motor, supplying batteries for Dongfeng Honda’s hybrid vehicles and for Dongfeng’s own-brand EVs.
In addition, Sunwoda’s batteries will be used in EVs to be launched by EV startup Xiaomi Auto after 2024, and will also reportedly be supplied to some of Ideal Auto’s new range extender SUVs (such as the Li L7/L8). (Li Auto)’s new range extender SUV (Li L7/L8, etc.).
Minebea also received the Outstanding Supplier Award from ZEEKR, a luxury EV brand, and provides battery packs for ZEEKR’s vehicles.
Outside of Japan, we are cooperating with the Nissan-Renault alliance to supply batteries for Nissan vehicles (Sylphy EV, etc.) for the Chinese market, and are operating a battery pack assembly plant in Hungary.
In addition, the company is said to be in contact with emerging European EV manufacturers.
Major consumer battery customers include Apple (contract manufacturing of some iPhone batteries), Dell/HP (for notebook PCs) and Chinese smartphone manufacturers.
Recent developments: Sunwoda is in the process of spinning off its automotive battery division and has initiated the IPO process of its subsidiary “欣旺达電動汽車電池” on the China STAR market in 2023.
Sunwoda plans to use the proceeds to expand battery production, which is expected to further increase supply capacity in the future.
In terms of technology, the company is focusing on the development of cell-to-pack technology and battery management systems (BMS) to promote high safety and long battery life.
In particular, the company plans to transfer its expertise in high power density and durability gained from the development of batteries for hybrid vehicles to batteries for electric vehicles.
In addition, a new plant is under construction to mass-produce automotive batteries for Xiaomei Automobile by 2024.
Sunwoda is also expanding its consumer battery business by developing new batteries for power tools and smart home appliances, and is considered one of the “Three Little Tigers” (three emerging battery manufacturers: Xinwangda, Ruipo, and Zhengli) and is expected to grow in the future.
