Sunwoda Power closes 16.8B yuan Series C as China's battery makers race for scale
What's the deal? Sunwoda Power, the EV battery subsidiary of Shenzhen-listed Sunwoda ElectronicDealroom has a profile for this one. Try Dealroom →, closed a 16.8 billion yuan (~$2.3B) Series C round from 13 investors. The group includes state-backed funds, industrial players, and financial institutions such as ABC Investment, China Post Capital, and equipment makers Lianying Laser and Yinghe Technology.
The investors subscribed to 8.87 billion yuan in new registered capital, acquiring a combined 6.3% stake. Post-round, Sunwoda Power's registered capital rises from 13.2 billion to 14.09 billion yuan, and its shareholder count hits 89. Parent company Sunwoda retains control through its Huizhou subsidiary, whose stake dilutes from 29% to 27.18%.
Meanwhile, Italian energy giant Eni and battery firm Seri Industrial announced a joint venture to build a lithium iron phosphate (LFP) battery supply chain in Italy. The partnership covers cell and module production, stationary energy storage systems, and e-mobility applications. A second gigafactory with over 8 GWh of annual capacity is planned by 2029.
Separately, Chinese battery maker Chuneng New Energy signed 12 GWh of energy storage orders at the SNEC 2026 expo in Shanghai — on top of 50 GWh in cumulative orders signed a month earlier at a separate trade show.
Why now? Global demand for LFP batteries is accelerating across EVs and grid-scale storage. China's battery makers are racing to lock in capital and orders while Europe pushes to reduce its dependence on Asian cell imports. Eni's Italian gigafactory plans reflect the EU's urgency to build domestic battery capacity ahead of tightening supply chain regulations.
Sunwoda Power's C round comes as the company scales production to compete with CATL and BYD. Bringing in 13 investors — many with government ties — signals strong policy support for second-tier battery champions.
What could go wrong? Overcapacity looms over the lithium battery sector. Chinese producers have built far more factory capacity than current demand requires, pushing cell prices to record lows. Sunwoda Power's 89-shareholder cap table adds governance complexity.
In Europe, Eni's gigafactory ambitions face cost headwinds. European cell production remains significantly more expensive than Chinese manufacturing, and several EU battery projects have already stalled or scaled back.
The signal: Sunwoda Power's $2.3B round — backed heavily by state-linked funds and battery equipment suppliers — underscores Beijing's willingness to bankroll challengers to CATL and BYD even as overcapacity drives cell prices to record lows. That the company is classified as "late growth" on Dealroom yet still pulling in mega-rounds suggests investors are betting on a consolidation phase where scale and government backing matter more than margins. With Chuneng signing over 60 GWh of storage orders in two months and Eni committing to European LFP production, capital is chasing grid-scale storage as the sector's next volume engine — a shift that could reshape which battery makers ultimately survive the shakeout.
Read more: jiemian.com
