Consumers upset by Mercedes' choice of battery following EV fire

Police and a firefighters inspect the charred frame of a Mercedes-Benz EQE electric vehicle at an underground parking lot in an apartment complex in Incheon, Aug. 2. Yonhap

Public anxiety about electric vehicles (EVs) has reached a peak after a Mercedes-Benz EQE sedan, fitted with a battery made by a lesser-known Chinese manufacturer that customers have labeled as unreliable, unexpectedly exploded last week, even though the vehicle was not being charged.

The German automaker is quickly losing customer trust following the recent incident. Concerns are mounting over the credibility of the problematic nickel cobalt manganese (NCM) battery produced by Farasis Energy, which has been identified as a key issue.

The NCM battery produced by the Chinese company has been associated with several safety issues internationally. In April 2021, China’s BAIC recalled some of their EVs equipped with Farasis Energy’s NCM batteries due to potential fire risks.

Korean battery firms such as LG Energy Solution and Samsung SDI demonstrate technological excellence in manufacturing NCM batteries, whereas Chinese companies are primarily concentrating on lithium iron phosphate (LFP) batteries.

Premium EVs manufactured by luxury carmakers are typically equipped with NCM batteries, which offer the advantage of longer mileage compared to LFP batteries. However, LFP batteries are more affordable and are therefore more commonly used in less expensive EVs.

Experts and industry officials noted that Mercedes-Benz Korea's vague response contributed to a growing nationwide fear of EVs.

“Mercedes-Benz Korea should have immediately announced that it will take responsibility for the explosion of its vehicle, but instead, has sat on the fence and appeared to shift blame for the latest accident,” said Lee Ho-geun, an automotive engineering professor at Daedeok University.

It remains to be determined whether the carmaker or the battery supplier is at fault. However, since the end product was launched by Mercedes-Benz, the automaker needs to focus on addressing the growing fears among customers, according to Lee.

The professor recommended that the government and the National Assembly draft a bill aimed at minimizing damage from potential future incidents. Among the bill's provisions is a measure to prevent EVs from being fully charged, particularly at underground charging stations.

The Ministry of Land, Infrastructure, and Transport is considering implementing a regulation requiring EV manufacturers to disclose details about the batteries used in their vehicles when selling them to customers. Currently, EV manufacturers do not provide information on the names of battery suppliers or the specific types of batteries used.

Police inspectors and officials from Mercedes-Benz Korea carry out a joint investigation on charred EQE vehicle in Incheon, Thursday. Yonhap

Kim Dae-jong, a professor of business administration at Sejong University, argued that carmakers appeared to be overly focused on maximizing their sales figures without conducting thorough safety checks on their vehicles.

“Carmakers should focus more on enhancing their safety monitoring to prevent the latest incident from recurring,” he said.

Some have speculated that Mercedes-Benz might have sourced batteries from the Chinese firm, especially since the German carmaker's largest and second-largest shareholders are Chinese companies. BAIC, for instance, holds the largest stake, with a 9.97 percent share in the German automaker.

However, industry officials argued that it is unlikely Mercedes-Benz engaged in such practices due to its governance structure.

“For carmakers, the top priority is to receive stable part supplies from multiple partners,” an official at a carmaker said.

“Automakers design the details of the batteries used in their EVs and inform their battery manufacturing partners accordingly. There is typically a defect rate associated with any product. Therefore, it is premature to conclude that all batteries from the Chinese firm are defective.”

The official also said Mercedes-Benz Korea should have responded more swiftly after the EQE fire incident.

“Even though an investigation is ongoing, it is still disappointing that the company has not shared any information about its compensation plans,” he said.