The Korean government said on Tuesday it plans to recommend that all electric vehicle makers voluntarily disclose the names of their battery suppliers. German carmakers revealed battery suppliers for their electric vehicle models on their websites Tuesday, following similar efforts by Korean companies Hyundai Motor and Kia Corp. Bloomberg reported.
South Korea-based automakers are taking precautionary measures to address growing concerns about the safety of electric vehicles, after a disconnected Mercedes-Benz electric sedan caught fire at an apartment complex in Incheon earlier this month. The incident led to the evacuation of 200 families and sparked calls for stricter government measures on electric vehicles.
Special free vehicle inspections
Bloomberg Agency notes that full disclosure by electric vehicle battery manufacturers is a rare move by automakersbecause this information is usually kept secret. Mercedes did not specify which company manufactured the battery in the car that exploded and burned in Korea, endangering many people. However, Local media identified the manufacturer of the dangerous battery as China’s Farasis Energy.
Mercedes-Benz Korea is offering free checks on all of its electric vehicle models starting Wednesday.the company said in a statement. Separately, the company announced plans to donate about 4.5 billion won ($3.3 million) to help residents affected by the blast, even though an investigation into the fire is still ongoing.
Was the ill-fated battery from a Chinese company?
Farasis, the alleged manufacturer of the ill-fated battery, was ranked 15th among the world’s battery manufacturersaccording to BloombergNEF estimates of production capacity in 2023-2025.
The company began supplying batteries to Mercedes in 2018 under an eight-year contract with the German automaker. In 2020, the Stuttgart-based German manufacturer became a strategic investor in the Chinese company, some reports said.
Serious problem or just an incident
“It is difficult to say at this stage whether Farasis batteries are the problem, but the general consensus is that the risk is higher for smaller battery manufacturers than for larger manufacturerssuch as CATL or Korean manufacturers,” said Yoon Joonwon, a fund manager at DS Asset Management Co. in Seoul.
“Until this issue is resolved, consumer sentiment toward electric vehicles can be expected to remain negative for some time,” Yoon Joonwon added.
