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Zeekr, the luxury electric vehicle division of a major Chinese automaker, is recalling nearly 40,000 of its 001 WE models due to concerns about battery quality, according to China’s leading market regulator. The recall includes 38,277 units produced between July 8, 2021, and March 18, 2024, and will commence on March 6.
Some of these vehicles may have batteries at risk of thermal runaway under extreme conditions, posing safety hazards. The company is performing inspections and remote diagnostics and is providing free replacement battery packs for vehicles that haven’t yet had their batteries swapped to mitigate the risk.
This recall stems directly from a legal dispute between the automaker, based in Hangzhou, and its battery supplier, Sunwoda Electronic, which was recently settled. Last year, the automaker’s in-house battery division sued Sunwoda’s subsidiary, Sunwoda Mobility Energy Technology, over alleged quality issues with battery cells supplied from June 2021 to December 2023, seeking over 2.3 billion CNY (approximately $320 million) in damages.
The affected model, the luxury all-electric Zeekr 001 WE86, represented a significant portion of the company’s sales, with more than 70,000 units sold in 2022—over 60 percent of which were WE86 vehicles.
Sources have disclosed that resolving potential safety risks associated with Sunwoda battery cells in the Zeekr 001 WE86 was a key condition in reaching the recent settlement agreement on February 6. Under the terms, Shenzhen-based Sunwoda will compensate the automaker with 608 million CNY (around $87.8 million), covering costs already incurred up to the end of 2025 related to the battery issues. Any expenses incurred afterward, including recall-related costs, will be split between the two companies according to agreed-upon terms, with Sunwoda expected to pay its share within five years.
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