Mercedes-Benz Korea has revealed the supplier of its electric vehicle (EV) batteries after a recent incident where one of its cars exploded in a parking lot. The explosion occurred on August 1 in an underground parking lot in Incheon, causing a massive fire that damaged or destroyed 140 cars and the building itself. Some residents were forced to evacuate to shelters.
This incident is not isolated, as Chinese EVs have also been known to catch fire after accidents or due to spontaneous combustion, raising concerns about safety and quality. In fact, China’s BAIC Group had to recall around 32,000 electric vehicles last year because Farasis Energy’s batteries posed a fire risk.
According to Taiwanese economist Huang Shicong, China produces the most EV batteries globally but faces issues with overall quality. He explained that explosions or fires often occur due to poor quality control.
Lithium-ion batteries used in EVs can burn at much higher temperatures than conventional gasoline-powered vehicles and are more difficult to extinguish. This is due to the battery’s thermal runaway effect, which triggers a chain reaction within battery cells.
Chu Yueh-chung, an Assistant Professor of Finance at Southern Taiwan University of Science and Technology, noted that many car manufacturers worldwide, including Tesla, use Chinese batteries. However, he emphasized that there is significant variation in quality among different EV battery manufacturers in China.
To address public concerns following the car fire incident, South Korea announced plans on August 13th for automakers to voluntarily disclose battery information for EVs. Additionally, comprehensive electric vehicle safety measures will be released by early next month.
Chu stressed that automakers should take responsibility for quality control and their supply chains. He believes it is crucial for car manufacturers themselves to conduct tests in order to protect their reputation and brand integrity since governments cannot specifically target quality issues.
