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South Korea to require EV makers to disclose battery brands after fire, media report says
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South Korea to require EV makers to disclose battery brands after fire, media report says
Aug 7, 2024 8:53 PM

SEOUL, Aug 8 (Reuters) - South Korea plans to require

electric vehicle (EV) makers to disclose the brand of batteries

in cars due to safety concerns after a vehicle in an underground

parking lot caught fire, causing extensive damage, a newspaper

reported on Thursday.

The transport ministry intended to amend laws to require car

companies to identify battery manufacturers, the Chosun Ilbo

reported, citing an unnamed transport ministry official.

Automakers in South Korea currently need to disclose certain

information about vehicles, including size and fuel efficiency,

but only limited details on batteries, such as power capacity,

and do not have to cite the manufacturers, the newspaper said.

The transport ministry declined to give an immediate comment

on the report.

Last week, a Mercedes-Benz electric sedan with batteries

made by Chinese company Farasis Energy caught fire

in the underground garage of an apartment in the South Korean

city of Incheon, according to media reports.

The blaze took more than eight hours to extinguish and

damaged about 140 cars and 23 people were hospitalised due to

smoke inhalation, Yonhap news agency said.

Mercedes-Benz Korea said in a statement it took the incident

very seriously and planned to cooperate with authorities to

determine the cause.

Farasis did not immediately respond to a request for

comment.

The Seoul Metropolitan Fire & Disaster Headquarters in a

report published in February said 1,399 fires occurred in

underground parking lots in South Korea between 2013 and 2022

with 43.7% attributed to vehicles. It said electrical sources

accounted for 53% of car fires in underground garages.

"A series of EV fires occurring in underground parking lots

have been linked to growing consumer distrust of EVs, which

could prolong the current EV downturn," said Esther Yim, an

analyst at Samsung Securities, adding that car and battery

makers needed to come up with measures to reassure consumers.

Last month, Hyundai Motor ( HYMTF ) said it would expand

hybrid line-ups as demand for EVs eases globally.

Meanwhile, battery maker LG Energy Solution,

whose customers include Tesla, General Motors ( GM )

and Hyundai Motor ( HYMTF ) among others, cut its annual sales target on a

slowdown in global EV demand.

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