Hyundai recalls over 80,000 EVs over fire risks

KUALA LUMPUR: Hyundai Motor Corporation has recalled 82,000 electric vehicles. The issue revolves around the concerned car's battery system that poses fire risks. The replacement would cost Hyundai around $900 million and is a perfect example of how such bills are split between car manufacturers and battery makers. The said recall is conceded to be one of the biggest battery replacement drives conducted by a major auto player. It is to be noted that the batteries were manufactured by LG.

Korean Institute for Industrial Economics & Trade, senior researcher Lee Hang-ko said. “It's very significant for both Hyundai and LG as we are in the early stages of the electric vehicle era. How Hyundai handles this will set a precedent not just in South Korea but also for other countries."

What all Hyundai EVs are a part of the recall?

The recent Hyundai EV recall mostly includes the Kona, the brand’s biggest-selling electric car that was only recalled in Jan last year for a software upgrade after a spate of fires. Now the South Korean authorities are looking into the effectiveness of the first recall.

The recall applies to around 76,00 Kona EVs manufactured between 2018 and 2020. Apart from Kona, the recall also applies to the Elec City buses and Ioniq EV.

Regarding the known fire cases, there are some 15 reports involving the Kona EV. Eleven of these were reported in South Korea, two in Canada, and one each in Austria and Finland.

What is LG’s stand on the whole matter?

As mentioned earlier, Hyundai EVs used LG batteries. On hearing the news LG Energy Solutions (the unit that manufactured the batteries) quickly deflected the criticism. It said that Hyundai misapplied its suggestions for fast-charging logic in the battery management system. LG further added that the battery cell should not be seen as the direct cause of the mishap.

The South Korean Transport Ministry has found some defects in a few battery cells produced at LG Energy’s China plant. Hyundai, however, didn’t comment on the cause of the fire.

How will the replacement cost be split?

Hyundai has informed the analyst that an agreement on how the cost will be split may be worked out next week. However, many in the industry were hoping for a much longer time frame, given the reputation at stake and the still unknown reason behind the fire.

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