Hyundai begins $900M review on battery systems in electric vehicles

Hyundai Motor Co will supplant battery systems in about 82,000 electric vehicles worldwide because of fire hazards – an expensive $900 million review that reveals the prickly issue of how vehicle and battery producers split the bill when issues emerge.

The review is one of the first mass battery pack substitutions led by a significant automaker.

“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,” said Lee Hang-koo, senior researcher at the Korea Institute for Industrial Economics & Trade.

The review generally concerns the Kona EV, Hyundai’s greatest selling electric vehicle which was first reviewed toward the end of last year for a software update after a spate of flames. One of the reviewed Kona EVs burst into flames in January, notwithstanding, and South Korean specialists dispatched a test into whether the first review had been sufficient.

LG Energy Solution, a division of LG Chem Ltd which fabricates the batteries, rushed to avoid analysis.

It said in an explanation that Hyundai twisted LG’s proposals for fast-charging logic in the battery management system, adding the battery cell ought not be viewed as the immediate reason for the fire hazards.

South Korea’s transport ministry said in a statement that a few deformities had been found in some battery cells produced at LG Energy’s China factory. Hyundai didn’t comment on the reason for the fires.

Hyundai shares tumbled 3.9% while those for LG Chem shut down 2.8% in accordance with the more extensive market.

Experts said they had been told by Hyundai that a concession to how to part the expenses might be worked out one week from now. All things considered, they figured it may take longer given that reputational a lot was on the line and the two firms had all the earmarks of being at chances over the reason for the flames.

Hyundai declined to remark on LG Energy’s assertion or give subtleties on when it will work out expenses, saying just it will initially sit tight for the aftereffects of the vehicle service’s test.

The review applies to almost 76,000 Kona EVs worked somewhere in the range of 2018 and 2020, incorporating around 25,000 sold in South Korea. Some Ioniq EV models and Elec City transports are likewise remembered for the review.

The assessed $900 million in expense incorporates $35 billion that was spent on the primary review.

There have been approximately 15 instances of flames including the Kona EV – 11 in South Korea, two in Canada and one each in Finland and Austria.

Topics #electric vehicles #Hyundai