China's power bank scandal leads to supplier's lawsuit against Romoss for unpaid funds

The ramifications of China's power bank scandal, which prompted an emergency ban of substandard models on domestic flights, have extended to a mainland court, where troubled manufacturer Romoss Technology was slapped with a lawsuit for unpaid funds.

Shenzhen-based electronics contract manufacturer Zowee Technology filed the lawsuit at the People's Court of Pengjiang district in Jiangmen, a city in southern Guangdong province, where it sought 136.26 million yuan (US$19 million) in damages against six defendants, including Romoss' two subsidiaries in Shenzhen and Jiangmen, according to the plaintiff's announcement on Tuesday.

In its court filing, Zowee said it also expected to recover costs related to finished goods plus interest, losses from orders in transit, an obsolete material fee, rework fees and compensation for labour losses. The company claimed that the four other defendants named in the lawsuit were jointly and severally liable for Romoss' financial obligations.

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Zowee said it was unable to assess the potential impact of the lawsuit on its current or future profit because of ongoing court proceedings.

The firm's Shenzhen-listed shares closed 2.10 per cent lower to 9.79 yuan on Thursday.

Five power bank models made by Romoss Technology are displayed on its website. Photo: Romoss alt=Five power bank models made by Romoss Technology are displayed on its website. Photo: Romoss>

The lawsuit marked another setback for Romoss, which sells its products in dozens of countries, after the firm suspended manufacturing for at least six months since July because its power banks were linked to multiple reports of explosions.

The company also closed its stores on major Chinese e-commerce platforms after a massive recall of its products.

That followed the Civil Aviation Administration of China's emergency ban in June on air passengers carrying substandard power banks - the ubiquitous portable batteries used by travellers to charge smartphones, tablets and laptops.

Last month, the State Administration for Market Regulation introduced new regulations that require makers of portable lithium-ion battery packs to obtain the China Compulsory Certification, or 3C safety mark, before their products are made, distributed and sold in China.

At the end of August, smartphone giant Xiaomi made a voluntary recall of 140,000 power banks because of the potential risk of overheating owing to its supplier's defective battery cells.

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The affected power banks were manufactured between August 1 and September 2, 2024, according to Xiaomi. It said these products were removed from the online shopping platform Taobao, adding that individual refunds of up to 159 yuan would be provided.

That came months after Romoss and Anker Innovations launched massive recall programmes for over 1.2 million power banks, with both companies citing problematic battery cells that overheated and made them fire hazards.

This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2025 South China Morning Post Publishers Ltd. All rights reserved.

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