A fire has ignited beneath a Kia EV6 in a parking area in Geumsan, South Chungcheong Province on Aug. 6. (Yonhap)

Electric vehicle battery manufacturers are bracing for increased scrutiny as South Korea considers new regulations requiring automakers to disclose their battery suppliers for each vehicle model, following a series of EV-related fires including a blaze in Incheon that damaged 100 vehicles.

The car in the Incheon fire was a Mercedes-Benz equipped with a battery from Farasis, a Chinese manufacturer ranked 10th in the world by revenue. The exact cause of the fire -- whether it stemmed from the battery, the vehicle's battery management system, or other external factors -- remains under investigation.

The Ministry of Land, Infrastructure and Transport held an emergency meeting Monday to discuss the possibility of implementing a battery reliability certification system and mandatory disclosure of battery manufacturers. The ministry also plans to hold a separate meeting with carmakers to gather their perspectives and potential countermeasures.

But transparency may come even without regulation. Hyundai Motor Company, Korea’s largest carmaker, already took proactive steps by listing the battery manufacturers for all its EV models on its Korean website over the weekend. Following Hyundai’s lead, Kia disclosed the battery manufacturers for its seven EV models on Monday, and BMW Korea has followed suit.

This shift toward transparency has sparked a mix of concern and cautious optimism within Korea’s battery sector. On one hand, there’s a fear that such disclosures could lead to battery makers being unfairly blamed for fires, regardless of whether there was a problem with the battery.

"When an EV catches fire, the battery often goes up in flames too, but that doesn’t mean the battery was necessarily at fault," explained an official from a leading Korean battery manufacturer. "With complete transparency, there’s a risk that consumers will automatically blame us whenever there’s an incident."

On the other hand, he also noted that transparency could eventually work in favor of Korea’s battery industry. By highlighting the quality and reliability of Korean-made batteries compared to Chinese alternatives, companies could strengthen consumer trust.

"Many Chinese manufacturers, other than global leaders like CATL and BYD, cut costs by compromising on safety. If battery makers are disclosed across the board, this could turn into a win for Korean companies, as consumers start paying more attention to battery brands when choosing EVs -- especially since a single car model can be outfitted with batteries from different suppliers," he added.

Police remove an electric Mercedes-Benz EQE 350 sedan from the underground parking lot of an apartment building in Incheon, 27 kilometers west of Seoul, on Aug. 5, following the completion of their investigation. The car had exploded and caught fire on Aug. 1, leading to 22 residents and a firefighter being hospitalized. The incident also resulted in around 40 vehicles being burned and damage to an additional 100 cars in the parking lot. (Yonhap)

The aforementioned Incheon blaze occurred on Aug. 1, when a Mercedes EQE 350 caught fire in an underground parking lot in Cheongna International City, Incheon. The blaze damaged over 100 vehicles and displaced hundreds of residents while wrecking the building’s plumbing and electrical systems.

The vehicle was later found to be using a nickel-cobalt-manganese battery from Farasis. For a car that costs over 100 million won (around $73,000), the use of a battery from a relatively unknown Chinese brand raised eyebrows.

Farasis’s NCM batteries, which had already been recalled in China in 2021 due to fire risks, are now under scrutiny in Korea, with the government urging Mercedes-Benz Korea to inspect the 3,000 vehicles equipped with these batteries.

Despite the potential advantages for non-Chinese battery makers, other industry insiders warn against complacency.

"While it’s true that Farasis' NCM batteries had problems in 2021, the perception that Chinese batteries are universally low-quality is unfounded. The investigation into the Incheon fire is ongoing, and the cause has not been confirmed. Korean batteries are not immune to fire controversies. What if another major fire involves an EV with a Korean battery?" said another official of a Korean battery manufacturer.

The local units of foreign carmakers like Tesla and Mercedes-Benz have traditionally been reluctant to disclose battery suppliers, citing the complexity of revealing every component's origin. These brands argue they are primarily sales entities and lack the authority to make decisions on aspects related to vehicle manufacturing. A spokesperson for Mercedes-Benz stated, "Should battery manufacturer disclosure become mandatory, we will comply and are currently assessing how to implement this."

Importer Polestar, which released its Polestar 4 in Korea on Tuesday, has routinely disclosed its battery suppliers in its press releases. Other automakers, including GM Korea, Cadillac and Stellantis, are considering implementing similar practices.

This practice aligns with broader global regulatory trends. The United States is currently pursuing mandatory battery disclosure in certain states, while Europe will require all EV manufacturers to disclose battery suppliers to consumers starting in 2026.