THE South Korean units of Mercedes-Benz Group and BMW disclosed the names of the companies that supply their electric-vehicle batteries for the first time after an EV explosion in the country prompted a nationwide safety investigation.
The German carmakers revealed the battery suppliers for their EV models on Tuesday (Aug 13) on their websites, after Hyundai Motor and Kia shared the names of their battery makers in recent days. The move comes as the government plans to hold a joint meeting with automakers Tuesday to discuss short-term measures to prevent the risk of further EV fires.
Automakers based in South Korea are preemptively taking action to address the growing fears over EV safety, after an unplugged electric Mercedes-Benz sedan caught fire at an apartment complex in Incheon earlier this month. The incident led to the evacuation of 200 families and triggered calls for tougher government measures on EVs.
The full disclosure of EV battery manufacturers is a rare move by carmakers as the information is typically kept confidential around the globe. While Mercedes did not specify which company made the battery in the car involved in the fire, local media identified it as China’s Farasis Energy. The transport ministry has advised Mercedes to conduct a special inspection of the vehicle in question, reports say.
Mercedes-Benz Korea is offering free inspections for all of its EV models from Wednesday, it said in a statement. Separately, the company announced plans to donate about 4.5 billion won (S$4.8 million) to help residents affected by the explosion, even though the investigation into the fire is still underway.
Farasis was ranked 15th among the global battery makers, according to a BloombergNEF estimate of manufacturing capacity between 2023-2025. It began supplying batteries to Mercedes-Benz in 2018 as part of an eight-year contract with the German carmaker becoming a strategic investor in the company in 2020, some of the reports said. Farasis did not immediately respond to requests for comment.
“It’s difficult to tell at this point whether Farasis batteries are the problem, but there’s a general sentiment that the risk is higher with smaller battery makers than major producers like CATL or Korean makers,” said Yoon Joonwon, a fund manager at DS Asset Management in Seoul. “Until the issue is resolved, consumer sentiment towards EVs is expected to remain deteriorated for some time.” BLOOMBERG
