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Battery fires in electric cars have been among the worst horror stories from critics of the vehicles. Dramatic video footage of a fire erupting from a parked, unplugged Mercedes EV in the basement of a South Korea apartment complex has become a visual representation of those fears. This event, which damaged 880 other cars in the car park, could start to change disclosure regulations for makers of EVs and batteries around the world.
The South Korean units of Mercedes-Benz and German rival BMW disclosed the names of the battery makers that supply their EV batteries for the first time this week. This is a rare but important move: the information has long been kept a closely guarded secret for many EV makers. For Mercedes, this is an attempt to staunch the flow of bad press in a market reported to be the second largest for its high-end Maybach brand. One in every 18 cars sold in South Korea is a Mercedes.
It is important not to overstate the risks here. In the US, one of the biggest EV markets in the world, electric vehicles were involved in about 25 fires for every 100,000 sold, compared with 1,530 for gasoline cars and 3,475 for hybrids, according to data from the US National Transportation Safety Board.
But despite these statistics, battery fires continue to be a concern for EV buyers. Lithium-ion EV batteries contain material that is highly flammable. EVs also combust differently, creating the risk of longer lasting and harder to extinguish fires.
South Korea, where cumulative EV sales topped the 500,000 mark last year, has launched a nationwide safety investigation into the explosion. But the incident is already forcing change: Hyundai Motor and Kia also pre-emptively shared the names of their battery suppliers, with other automakers expected to follow suit.
The country’s government has already announced plans to advise all EV makers to voluntarily disclose their battery suppliers. More transparency and tougher regulations are likely to follow: the government is set to bring forward comprehensive measures on EV safety in the coming weeks.
For EV battery makers, this could be a double-edged sword. Battery makers with a better record on safety could get more orders in an environment where there is more disclosure — and consumers are paying attention.
But this opportunity also comes with risks. Pinpointing the exact cause of an EV fire is difficult, with causes ranging from issues with the charger to software errors and even damage from a previous collision. The battery makers do not want to be the ones that always end up taking the blame.
june.yoon@ft.com
