Sunwoda Seeks EV Battery Unit Funding at $3 Billion Value

(Bloomberg) -- Sunwoda Electronic Co. is considering raising new funds for its electric-vehicle battery unit at a valuation of more than 20 billion yuan ($3.1 billion), according to people familiar with the matter.

The Shenzhen-listed company is looking to raise about 3 billion yuan to 4 billion yuan for the unit and has reached out to potential investors, said one of the people, who asked not to be identified as the information is private.

Considerations are at an early stage and details such as valuation and fundraising size could still change, the people said. A representative for Sunwoda didn’t immediately respond to requests for comment.

EV battery manufacturers in China are attracting billions of dollars as carmakers are looking to diversify their supply. Sunwoda in February raised almost $400 million from 19 investors led by EV startup Li Auto Inc. as well as state-owned automakers Guangzhou Automobile Group Co. and SAIC Motor Corp.

Founded in 1997, Sunwoda started with making batteries for smartphones, according to its website. It founded the EV battery business in 2008. The lithium-ion battery maker has eight production bases in China and India with some technical centers in the U.S. and Europe. It went public on Shenzhen’s ChiNext exchange in 2011. Sunwoda counts carmakers including Zhejiang Geely Holding Group Co. and Dongfeng Motor Group Co. among its major customers.

Shares in Sunwoda have climbed about 19% in the past year, giving the company a valuation of about $6.3 billion.

Ruipu Energy Co., a Chinese EV battery maker backed by the world’s largest nickel producer Tsingshan Holding Group Co., is seeking to raise funds at a valuation close to $4.7 billion, Bloomberg News reported last week. REPT, as the business is known, is also exploring a Hong Kong initial public offering that could raise about $1 billion, people familiar with the matter have said.

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With assistance from Bloomberg