South Korean authorities are contemplating a mandate for automakers to reveal the brands of batteries used in their electric vehicles (EVs). This follows a recent EV fire that has heightened consumer apprehension about the safety of these vehicles.
What Happened: A fire in a parked Mercedes-Benz EV on Aug. 1 prompted an emergency meeting on Monday. The fire, which took eight hours to extinguish, damaged about 140 cars and forced residents of the apartment block above to evacuate.
South Korean officials held a meeting, chaired by the vice environment minister, which was attended by representatives from the transport and industry ministries, as well as the national fire agency. The government is expected to announce new regulations soon, Reuters reported on Monday.
Transport ministry officials are scheduled to meet with automakers on Tuesday, including Hyundai Motor Group HYMTF, Mercedes-Benz MBGAF Korea, and Volkswagen Group VWAGY Korea, to discuss the proposal to disclose battery brands used in EVs.
Images of the burnt vehicles have fueled consumer fears about EV safety, particularly in South Korea where many people live in apartments with underground parking lots.
Earlier this month, a Kia Corp‘s electric crossover EV6, equipped with batteries from South Korean manufacturer SK On, also caught fire in a parking lot.
According to a report by the Seoul Metropolitan Fire & Disaster Headquarters, 1,399 fires occurred in underground parking lots in South Korea between 2013 and 2022, with 43.7% attributed to vehicles. Electrical sources accounted for 53% of these vehicle fires.
The Chosun Ilbo newspaper reported last week that South Korea is considering requiring EV makers to disclose the brand of batteries in cars. Currently, automakers are only required to provide limited details on batteries and do not have to name the manufacturers.
Why It Matters: South Korea’s EV market has been growing steadily. Hyundai Motor and Kia Corp have recently secured their largest share of the U.S. EV market. Furthermore, Geely Automobile plans to penetrate the South Korean market with its premium EV by 2026. The proposed regulation could impact these automakers’ strategies and consumer confidence in EVs.
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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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