South Korea to Address Rising Concerns Over EV Fires

South Korea’s environment ministry announced plans to hold an emergency meeting next week to address the increasing number of fires involving electric vehicles (EVs), including a recent incident that caused extensive damage.

The meeting will involve collaboration with the land and industry ministries, the National Fire Agency, and other state bodies. The goal is to devise comprehensive measures to prevent such fires and alleviate public concerns over EV safety.

Growing Concerns and Upcoming Safety Measures:

The urgency of this meeting is fueled by analysts’ warnings that public concerns over EV safety could exacerbate the current slowdown in EV sales.

The government is expected to unveil new safety measures early next month, with potential requirements for automakers to disclose the brand of batteries used in EVs.

Currently, automakers in South Korea must provide information such as fuel efficiency but are not required to disclose detailed battery information, including the manufacturer’s name.

Recent Incidents and Industry Response:

The focus on EV fires intensified after a Mercedes-Benz electric sedan, equipped with batteries from Chinese company Farasis Energy, caught fire in an underground garage in Incheon, South Korea.

The fire, which took more than eight hours to extinguish, damaged about 140 cars, and led to the hospitalization of 23 people due to smoke inhalation. This incident has sparked serious concerns, with Mercedes-Benz Korea stating it is cooperating with authorities to determine the cause of the fire.

Impact on Consumer Trust and Industry Outlook:

The Seoul Metropolitan Fire & Disaster Headquarters reported that 1,399 fires occurred in underground parking lots between 2013 and 2022, with 43.7% linked to vehicles and 53% of car fires attributed to electrical sources. The recent EV fires have contributed to growing consumer distrust, which could further slow the already declining demand for EVs.

In response to the shifting market dynamics, Hyundai Motor has announced plans to expand its hybrid lineup, reflecting a shift in consumer preferences away from pure EVs. Additionally, LG Energy Solution, a major battery supplier to companies like Tesla, General Motors, and Hyundai Motor, has lowered its annual sales target due to the global slowdown in EV demand.

The upcoming measures from the South Korean government are expected to play a crucial role in restoring consumer confidence in EVs and stabilizing the market.