Mercedes, BMW reveal battery makers amid EV fire fears in South Korea

Mercedes-Benz and BMW have 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 automakers revealed the battery suppliers for their EV models on Aug.13 on their websites, after domestic automakers Hyundai and Kia shared the names of their battery makers in recent days.

At a meeting on Aug. 13, the government said it planned to advise all EV makers to voluntarily disclose the names of battery suppliers and offer free inspections to owners.

Automakers based in South Korea are preemptively taking action to address the growing fears over EV safety, after an unplugged electric Mercedes 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 automakers 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 is offering free inspections for all of its EV models from Aug. 14, it 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 explosion, even though the investigation into the fire is still underway.

Farasis was ranked 15th among the global battery makers, according to a Bloomberg estimate of manufacturing capacity between 2023-2025.

The manufacturer began supplying batteries to Mercedes in 2018 as part of an eight-year contract with the automaker 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 is 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 toward EVs is expected to remain deteriorated for some time.”

The Office for Government Policy Coordination will come up with comprehensive measures in September to address the safety risks of EVs, after having discussions with related ministries and industry experts, it said in a statement.