Mercedes-Benz is facing backlash in Korea after it was revealed that the battery in their EQE variant involved in a fire in an Incheon apartment parking lot was made by Farasis Energy, a lesser-known Chinese manufacturer.
According to Mercedes-Benz Korea, customers are upset and feel betrayed by the use of "cheap" Chinese batteries in luxury cars, leading some to cancel their EV reservations. This controversy has fueled the perception that Chinese batteries are inferior to their Korean counterparts—a view that experts argue is misguided.
They emphasise that safety concerns should focus more on battery type and technology rather than the country of origin. Simplifying the issue to "Chinese vs. Korean batteries" could harm the Korean battery industry, given the complexity of the global supply chain.
Following the incident, automakers like Mercedes-Benz, Hyundai-Kia, and others in Korea have begun publishing their battery suppliers and offering free EV inspections. The Korean government is also urging all EV manufacturers to disclose this information.
Mercedes-Benz’s supplier list revealed 29 different configurations across 16 EV models, including batteries from CATL, Farasis, SK On, and LG Energy Solution.
Although the cause of the fire is still under investigation—and despite Farasis recalling NCM batteries in 2021 due to fire risks—experts caution against labelling all Chinese batteries as low-quality. Most Chinese EV batteries are lithium-iron-phosphate (LFP), which are considered far safer than the nickel-cobalt-manganese (NCM) batteries like the one involved in the fire.
In fact, the latest Geely Aegis LFP blade battery has been tested to withstand extreme shocks, where an aluminium foil layer fuses into the battery diaphragm to prevent short circuits and thermal runaway.
According to EV battery experts, the reason Mercedes-Benz opted for Farasis batteries may simply come down to timing and necessity. Mercedes-Benz was slow to enter the EV space and had to catch up quickly at a time when EV battery demand was peaking and supplies were short.
As a result, their options were limited, with most suppliers already committed to other automakers. Farasis was one of the few Chinese firms capable of producing high-density NCM batteries at the quality level required—batteries that are technically on par with those supplied by CATL.
Moving forward, beyond the EV inspections and possible compensation for the victims, the major question is how Mercedes-Benz will handle the drop in interest in their EVs. In Malaysia, the public has yet to be briefed on an EV fire involving the EQB at a dealership in Johor Bahru back in January, which casts doubt on the brand's commitment to safety.
This uncertainty seems to be reflected in sales numbers, where BMW appears to have an upper hand in the premium EV space which Mercedes-Benz is missing out despite having the most offering in the market.