Xiaomi backs Sunwoda Power in $255M round for 5.3% stake
What's the deal? Sunwoda Power Technology has raised US$233.8M in a Series C extension from Xiaomi group. The deal gives Xiaomi a 5.34% stake, making it the battery maker's third-largest shareholder.
What does it do? Sunwoda Power develops battery cells, modules, battery management systems, and packs, supplying power batteries and energy-storage products. It is a subsidiary of Shenzhen-listed Sunwoda (300207.SZ).
The structure: The entire US$233.8M was booked as new registered capital, with no secondary share sales. The pricing held flat with the previous Series C, putting Sunwoda Power's post-money valuation at roughly US$4.37B.
Why now? Xiaomi is already a Sunwoda Power customer, with the battery firm supplying cells for Xiaomi's "Longjia" battery line. The investment deepens that supply tie into joint work on cell research, capacity, and delivery.
The context: Sunwoda Power now counts both Xiaomi and Li Auto among its backers, a rare position for a Chinese battery maker. Li Auto holds 11.17% through related entities after an earlier investment, making it the second-largest shareholder.
What could go wrong? After the raise and a board reshuffle, parent Sunwoda will hold no more than half of Sunwoda Power's 12 board seats and will lose control, deconsolidating the power-battery business. Sunwoda estimates the accounting change will add US$440M to US$618.8M to its 2026 net profit — a one-off effect that is separate from operating performance.
The move follows a tough quarter for the parent. Sunwoda reported US$8.73B in revenue for the first three quarters of 2026, up 45.78% year on year, but net profit attributable to shareholders fell 56.37% to US$84.3M. Third-quarter net profit dropped 98.08% to US$1.45M, which the company blamed on soft consumer-electronics demand, higher material costs, and currency losses.
Sunwoda said the deal lets it focus resources on consumer batteries and energy-storage systems while keeping a stake in the power-battery business. On the same day, it scrapped a long-planned Hong Kong listing, citing market conditions and the business changes from deconsolidation.
The signal: The round continues a trend of carmakers using equity to lock in battery supply. For Sunwoda Power, repeated backing from automakers underscores its push to win orders; for Xiaomi, it widens supply options as it scales its EV business.
Read more: itjuzi.com
Image credit: Generated with Gemini
