Battery Firm Sunwoda Responds to Possibility of Supplying Xiaomi Auto

Power battery company Sunwoda held a performance briefing on Wednesday to discuss the likelihood of its provision of batteries for Xiaomi’s auto business, as well as product prices and revenue expectations.

Sunwoda was founded in 1997, focusing on the R&D, design, production and sales of lithium battery cells and modules, officially starting production of electric vehicle batteries in 2008.

In response to the question of its providing batteries for Xiaomi‘s auto business, Sunwoda said that Xiaomi is an important customer and partner of the company. It will actively pay attention to the trends and needs of customers in the industry, make enough technical reserves and actively seek cooperation opportunities with customers.

According to different customers, projects and product structures, Sunwoda has adjusted the price of power batteries based on the rate of leading companies in the industry. According to data by High-Tech Lithium Battery, a research platform focusing on this specific field, the price of power batteries has increased by 15% to 30%.

Sunwoda has taken effective measures to control the impact of the recent pandemic outbreak in China, and the company’s current operations remain normal. When talking about the firm’s Nanchang Base located in Jiangxi province, Sunwoda said that it will be put into production in the second quarter of this year.

The financial report shows that Sunwoda achieved a total operating income of 37.359 billion yuan ($5.8 billion) in 2021, a year-on-year increase of 25.82%, while net profit attributable to the parent company was 916 million yuan, a year-on-year increase of 14.18%. In the field of power batteries, Sunwoda achieved revenue of 2.933 billion yuan in 2021, a major increase of 584.67% from 2020.

Sunwoda estimates that its pure electric vehicle business will account for 70%-80% of power battery revenue this year, while its hybrid electric vehicle and energy storage businesses will each account for 10%-20%.

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Sunwoda mentioned that its sales of energy storage systems last year totaled about 300 million yuan, which did not include battery cell revenue. At present, Sunwoda has not yet realized self-sufficiency in the field of battery cells. Zeng Xun, the deputy general manager of Sunwoda, said that in the future, the company will increase investment in lithium-ion batteries and improve the self-supply rate of lithium-ion battery cells.