China’s top electric vehicle (EV) battery maker Contemporary Amperex Technology Co., Limited (CATL) (300750.SZ) had sued its rival Svolt Energy for alleged unfair competition.
Nine former CATL employees joined two affiliated companies of Svolt Energy, and CATL believes that the individuals violated their non-compete agreements, according to local news media called jiemian.
CATL has launched the lawsuit in the Intermediate People’s Court in Ningde city, Fujian province, where it is headquartered, and the case is set to go to trial this month, according to the report.
Between 2018 and 2019, nine former CATL employees joined two affiliated companies of Svolt Energy, a competitor of CATL. CATL argues that the individuals breached their non-compete agreements and is therefore seeking RMB 1 million($157.35 thousand) in damages for breach of contract, according to the report.
Svolt said it has taken note of the report and the company is already actively preparing to respond to the lawsuit.
Some infromation about CATL and SVOLT
CATL and Svolt’s main business is power batteries used in NEVs. According to the global installed capacity of electric vehicle power batteries in 2021 announced by the South Korean research institute SNE Research, CATL, market share exceeds 30%, ranking first in the world for five consecutive years.
Svolt Energy entered the global top 10 with a market share of 1%. in 2021, the company’s installed power battery capacity grew at a rate of more than 430% year-on-year.
Svolt Energy was formerly known as the Power Battery Division of Great Wall Motor (601633.SH.) In 2018, Svolt Energy broke away from Great Wall Motor and began independent. The company has recently launched IPO counseling and plans to land on the capital market.