Cona EV charging with LG Energy Solution battery installed. Hankook Ilbo DB
Although it was decided to replace the entire Kona Electric (EV) battery, the conflict between Hyundai Motor Company and LG Energy Solution is expected to continue. The government and Hyundai Motor Company announced the cause of the fire for’battery cell manufacturing defects’, but LG Energy Solutions is directly refuting this.
On the 24th, Hyundai Motor Company decided to carry out recalls for three electric vehicles, including Kona EV, Ioniq EV, and Electric Bus, both domestically and abroad. In Korea, the recall targets a total of 26,699 units, including 25,083 Kona EVs, 1,314 Ionik EVs, and 302 Eleccity. Overseas, a total of 55,002 units, including 5,597 Kona EVs, 4,402 Ioniq EVs, and 3 Elexity units, amounted to 81,701 units in the global total recall.
Hyundai Motor Company explained the background of the recall, “LG Energy Solutions decided to replace the entire battery because it was discovered that a fire could occur due to defective manufacturing of some battery cells produced at the Nanjing plant in China.” This is the same as the results of the survey conducted by the Ministry of Land, Infrastructure and Transport and the Korea Transportation Safety Authority (KATRI).
Hyundai Motor Company’s Kona EV, Ioniq EV, and Elexity electric bus battery replacement recall target.
Hyundai Motors estimated the total estimated cost of the recall at 1 trillion won. Regarding the recall cost sharing rate, the final quality cost will be calculated through consultation with LG Energy Solutions and will be reflected in the 4Q 2020 results.
The industry observes that the share of the recall cost between Hyundai Motor Company and LG Energy Solution will be determined between ’15:85′ and ’30:70′. This is because the weight was put on the’battery problem’ as the cause of the fire in the government investigation results.
However, the decision to share the cost of the recall is likely to be a long time ago. The share ratio is determined by the degree of negligence on the cause of the fire, as LG Energy Solutions is refuting the results of the investigation by the Ministry of Land, Infrastructure and Transport and Hyundai Motor Company.
Kona EV Fire and Recall Log
LG Energy Solutions said, “As announced by the Ministry of Land, Infrastructure and Transport, there is no fire in the reproduction test, so it is difficult to see it as a direct cause.” Said. He added, “As a result of our investigation, it was confirmed that Hyundai Motor Company incorrectly applied the fast charging logic to the battery management system (BMS).”
Researchers are checking battery products at the LG Energy Solution battery factory. LG energy solution provided
Experts predicted that in the end, the two companies are likely to have a legal battle over the cost sharing of the battery replacement recall.
If the two companies cannot determine the share ratio until March 29, when the battery replacement begins, Hyundai Motor, the subject of the recall, is expected to pay the recall cost first and claim the right to indemnify LG Energy Solutions. If disagreements on the share-sharing ratio are not finally narrowed down, there is a high possibility that a lawsuit will take place.
An industry insider said, “Since the recall cost may exceed KRW 1 trillion, both companies will not make any concessions in the process of deciding the sharing ratio.” I can.”
Ryu Jong-eun reporter [email protected]
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