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In a nutshell: It is rare for carmakers to disclose the company that provided the EV's battery, but a blaze set off by a Mercedes-Benz EV in a South Korean parking lot is changing this trend. Don't hold your breath for mandatory disclosures, though, as they could drastically impact the competitiveness of the industry for better or worse.
A Mercedes-Benz EQE 350 electric vehicle caught fire in a South Korean parking lot earlier this month, setting off a blaze that not only damaged hundreds of vehicles and hospitalized approximately 23 people for smoke inhalation, but also ignited a firestorm among consumers worried about fire safety and the lack of transparency around who exactly is supplying the batteries in their EVs.
In response to the public outrage, Mercedes-Benz Korea revealed that the EV involved in the fire used a battery from a lesser-known Chinese manufacturer called Farasis Energy. This revelation has brought the issue of battery supplier transparency to the forefront of public discourse in South Korea and could potentially spark a similar wave in other countries.
South Korea's Office for Policy Coordination is recommending that automakers voluntarily disclose battery brand information for all EVs sold in the country. Several automakers, including Hyundai, Kia, BMW Korea, and Mercedes-Benz Korea, have heeded this call and revealed which EV battery manufacturers they use on their websites.
Meanwhile, the country is experiencing what local media describes as sudden rise in "EV-phobia." Some apartment complexes have taken drastic measures, banning EVs from underground parking lots and shutting down charging stations. Local governments are also considering limiting public charging stations to 80% capacity to mitigate fire risks.
In short, this is a story with legs and has the potential to spark a global discussion around EV battery transparency. The incident highlights the stark contrast in approaches to battery disclosure across different regions. While it's rare for EV makers in the US to disclose a car's battery brand, the European Union has taken a proactive approach. Last year, the EU approved a mandatory "battery passport" for EVs, set to take effect in 2027.
Although there isn't a specific movement for disclosing battery manufacturers, there is growing demand for transparency in EV supply chains. This includes increased scrutiny over the sourcing of materials and potential connections to forced labor or environmentally harmful practices, which could potentially lead to greater disclosure about battery sources in the future.
More transparency has the potential to be a winner with consumers, given the dangers of EV fires, which present unique challenges compared to traditional internal combustion engine fires. While EVs are generally less prone to catching fire, when they do ignite, the blazes can be more intense and persistent. The high temperatures and potential for reignition also make these fires particularly difficult to extinguish completely.
There are a number of reasons why these cars catch fire, with one of the primary causes being an internal cell short circuit within the battery pack. Thermal runaway is another critical risk, which occurs when damage to the battery leads to uncontrollable overheating, potentially causing a fire to spread rapidly through the battery pack.
Experts in the automotive field have differing views on how to address this issue. Some automotive engineering experts suggest that simply disclosing the battery manufacturer may not be sufficient to prevent fires; instead, they propose a more comprehensive approach of certifying the fire safety of individual battery brands.
Other researchers believe that providing more information to consumers about battery brands could be beneficial. However, they caution that currently there is insufficient data to definitively determine which specific EV battery brands may be more susceptible to fire incidents.
Mandatory disclosure, meanwhile, would be difficult to implement because of the expected pushback from the industry, especially as not all manufacturers may have the same standards or track records. Revealing battery suppliers could impact automakers' competitiveness and negotiating power. EV manufacturers may be reluctant to disclose this information to maintain a competitive edge in the rapidly evolving EV market.
Also, the EV battery supply chain is complex and often involves multiple suppliers for components and materials. Providing full transparency on all aspects of battery manufacturing and sourcing could be challenging.
Finally, the EV battery industry is evolving quickly, with new technologies and manufacturers emerging. This rapid pace of change can make it challenging to maintain up-to-date and accurate disclosures.