Sunwoda Electric Vehicle Battery Co., Ltd. (Sunwoda EVB), a subsidiary of Chinese firm Sunwoda, has completed a new round of financing totaling 6 billion yuan ($886 million). The proceeds greatly exceed the round’s planned amount of 3 billion yuan, with a pre-investment valuation between 22 billion yuan and 23 billion yuan, domestic media outlet 36Kr reported on August 16.
The round was jointly led by Shenzhen Capital Group Co., Ltd. and other well-known institutions, including some state-owned funds based in Shandong Province. Shenzhen Capital Group Co., Ltd. also participated in a strategic investment round of 2.43 billion yuan obtained by Sunwoda EVB in February this year.
With this fresh capital, Sunwoda EVB may accelerate the pace of a spin-off IPO. According to previous reports by 36Kr, Sunwoda EVB has had such plans since the end of last year, and it will be listed as an independent company. It is expected to carry out an IPO in 2023 or 2024. Regarding the matter, a firm spokesperson stated: “I don’t know much about this; please refer to the final announcement of Sunwoda.”
Sunwoda is a power battery enterprise with strong development momentum at present. As evidenced by its 2021 financial report, although power battery business accounts for only 7.85% of Sunwoda’s overall revenue, its power battery business revenue reached 2.933 billion yuan last year, a year-on-year increase of 584.67%.
Under rapid growth, Sunwoda has successfully entered the list of battery suppliers of car companies. So far, Sunwoda has reached cooperation with XPeng, Renault S.A., Geely, Dongfeng Motor Corporation, GAC Motor and other car companies.
After receiving capital investment of 2.43 billion yuan from 19 enterprises including NIO, XPeng, Li Auto, SAIC and Dongfeng Motor Corporation this year, Sunwoda has also become a battery supplier of two major new car-making companies – XPeng and Li Auto. Among them, Sunwoda has become a Class A supplier of a certain version of the XPeng G9, while the main battery supplier of XPeng was CATL.
Currently, there are 10 battery production bases that Sunwoda has already or is expected to enter into operation. According to the company’s plan, their combined production capacity will reach 200GWh in 2025. Additionally, independent financing and a spin-off IPO are expected to help Sunwoda EVB further expand its market share.