Mercedes-Benz and BMW have reportedly disclosed the names of their electric vehicle battery suppliers in South Korea, following a recent EV explosion that triggered widespread revolt against electric vehicles.
Bloomberg reports that the South Korean units of Mercedes-Benz Group AG and BMW AG have taken a significant step towards transparency by revealing the names of their electric vehicle (EV) battery suppliers on their websites. This rare disclosure comes in the wake of an incident where an unplugged electric Mercedes-Benz sedan caught fire at an apartment complex in Incheon, South Korea, earlier this month. The explosion led to the evacuation of 200 families and sparked calls for stricter government measures on EV safety.
Typically, automakers around the world keep information about their battery suppliers confidential. However, the growing fears over EV safety in South Korea have prompted Hyundai and Kia to share the names of their battery makers in recent days. The German carmakers, Mercedes-Benz and BMW, have now followed suit as the government plans to hold a joint meeting with automakers to discuss short-term measures to prevent further EV fires.
Although Mercedes did not specify which company manufactured 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. In response, Mercedes-Benz Korea announced that it will offer free inspections for all of its EV models starting from Wednesday. Additionally, the company plans to donate approximately 4.5 billion won ($3.3 million) to help residents affected by the explosion, even as the investigation into the fire continues.
Farasis Energy, ranked 15th among global battery makers according to a BloombergNEF estimate of manufacturing capacity between 2023-2025, began supplying batteries to Mercedes-Benz in 2018 as part of an eight-year contract. In 2020, the German carmaker became a strategic investor in the company. However, Farasis did not immediately respond to requests for comment regarding the recent incident.
Yoon Joonwon, a fund manager at DS Asset Management Co. in Seoul, commented on the situation, stating, “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. Until the issue is resolved, consumer sentiment toward EVs is expected to remain deteriorated for some time.”
Read more at Bloomberg here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
COMMENTS
Please let us know if you're having issues with commenting.