Battery issues have triggered a worldwide recall for Volvo—and a lawsuit worth hundreds of millions of dollars.
Volvo Car Group, part of China’s Geely Holding, has launched a global recall of the Volvo EX30 electric crossover due to a potential fire risk associated with batteries supplied by Chinese manufacturer Sunwoda Electronic. The move comes amid a major lawsuit filed by a Geely subsidiary against Sunwoda, seeking compensation of 2.31 billion yuan—about $323 million—for allegedly defective battery cells.
The recall affects 33,777 Volvo EX30 vehicles worldwide equipped with Sunwoda battery packs. According to Volvo, signs of overheating have been identified in fewer than 0.02% of the cells. As a precaution, owners in the United States, Australia, South Africa, and the European Union have been advised to temporarily limit charging to 70% to reduce risk.
The immediate trigger for the recall was a fire that completely destroyed a Volvo EX30 at a dealership in Brazil in November 2025.
On December 26, 2025, Viridi E-Mobility Technology—a Geely subsidiary responsible for battery systems—filed a lawsuit against Sunwoda. The complaint seeks damages for allegedly defective battery components supplied between June 2021 and December 2023. According to the filing, the faulty cells led to reduced charging speeds and inaccurate driving-range estimates. Similar battery-related issues have reportedly affected other Geely models as well, including the Zeekr 001 WE86.
The reputational fallout for Volvo could be significant. The incident poses a serious challenge for a brand long associated with safety and reliability. Temporarily limiting charging to 70% has frustrated customers who purchased the EX30 expecting full advertised range, raising concerns about customer confidence—not only in the model itself, but in Volvo’s electric vehicles more broadly.