[The Editors' Verdict] Disclosure of Battery Manufacturers: A 'Storm in a Teacup'

Identifying Battery Makers by Vehicle Type
Insufficient to Calm Electric Vehicle Phobia

Domestic and international automobile companies such as Hyundai Motor, Kia, BMW, and Mercedes-Benz have broken the long-standing practice of ‘non-disclosure of parts’ and have begun to disclose the battery manufacturers, which are the core of electric vehicles (EVs), one after another. The automotive industry had long refrained from specifying parts manufacturers in detail based on the principle that ‘the brand takes full responsibility.’ Even after EV fire incidents, they maintained a passive stance toward demands to disclose battery makers, but eventually surrendered under pressure from consumers and the government.

Despite the sudden disclosure of battery manufacturers by model from each maker, doubts remain as to whether this will quell the ‘EV phobia’ phenomenon. EV batteries are not as simple as one might think. A battery consists of multiple packs, each containing thousands of cells. Moreover, the shapes vary, such as prismatic and cylindrical, and the compositions are classified into nickel-cobalt-manganese (NCM), lithium iron phosphate (LFP), and others. If accurate information is to be provided, it would be appropriate to disclose all details including composition and specific shapes. However, these makers only specified the battery manufacturer by model. This can be interpreted as ignoring differences that may arise from battery composition and shape, and judging performance and capability solely by the manufacturer’s name. The Kia EV6, which caught fire in Geumsan, Chungnam around the same time as the Mercedes-Benz EQE fire in Incheon, was equipped with batteries made by a major domestic battery company. These batteries are installed not only in Kia but also in the Mercedes-Benz EQB, another sports utility vehicle (SUV) that sparked controversy over Chinese-made batteries.

EV fires can occur due to manufacturing defects in the battery production process, but also from separator damage between the cathode and anode or overcharging. Unless all-solid-state batteries, which replace electrolytes with solids and represent a significant advancement in safety, become available, it seems unlikely that consumers will feel assured purchasing EVs solely based on the disclosure of battery manufacturers. Even before full disclosure of battery manufacturers, some car companies reportedly provided detailed information upon customer inquiries. From the customer’s perspective, the possibility that an undesired manufacturer’s battery might be installed in a preferred model is inevitably a concern.

On the contrary, exposing battery suppliers is expected to bring changes to the power dynamics between car makers and battery manufacturers. Car companies have maintained negotiating power by hiding battery suppliers to lower prices, but with all manufacturers disclosed, it becomes difficult to secure purchasing competitiveness.

EV fires recall the energy storage system (ESS) fire incidents that attracted attention several years ago. ESS installation is essential for efficient use of renewable energy, but demand sharply declined following successive fire incidents. According to the Ministry of Trade, Industry and Energy and the Korea Electrical Safety Corporation, the number of ESS installations linked to solar power plummeted from 643 units (1319 MWh) in 2018 to 30 units (96 MWh) in 2021, and last year only 3 units (1 MWh) were installed. ESS linked to wind power decreased from 16 units in 2017 to 2 units in 2020, with no installations from 2021 through last year. The EV market, which has consistently maintained over 100,000 units annually since 2020, may follow the same path as ESS.

The ‘battery real-name system,’ which only discloses manufacturers, seems far from a measure to restore trust in EVs. Car companies themselves are not enthusiastic about it. Although it is intended to identify cheap Chinese batteries, China’s CATL holds the world’s number one battery market share. Rather, only concrete measures to enhance battery safety can quell EV phobia.