A recent fire involving a Mercedes-Benz electric vehicle in the underground parking garage of a large apartment complex in Incheon has been traced to a battery manufactured by Farasis Energy, a Chinese electric vehicle battery producer. (Image courtesy of Yonhap)
SEOUL, Aug. 6 (Korea Bizwire) – A recent fire involving a Mercedes-Benz electric vehicle in the underground parking garage of a large apartment complex in Incheon has been traced to a battery manufactured by Farasis Energy, a Chinese electric vehicle battery producer.
According to the Ministry of Land, Infrastructure and Transport and industry sources, the battery cells in the Mercedes-Benz EQE sedan that caught fire on the morning of August 1 in the Cheongna International City apartment complex in Seo-gu, Incheon, were produced by Farasis Energy.
While some EQE models are equipped with batteries from CATL, the world’s leading battery manufacturer, the vehicle involved in this incident was confirmed to have Farasis Energy’s product.
The battery in question is of the nickel-cobalt-manganese (NCM) type, though the exact model specification remains undisclosed.
Farasis Energy, founded in 2009, has rapidly ascended in the global battery market. Last year, the company reported sales of $2.32 billion, capturing a 1.8% market share, and shipped 15 gigawatt-hours (GWh) of batteries.
These figures placed Farasis Energy in the top 10 globally for both sales and shipment volume.
The Chinese battery maker’s relationship with Mercedes-Benz’s parent company, Daimler, dates back to 2018 when they signed a 10-year contract for 170 GWh of batteries.
In 2020, Mercedes-Benz further solidified this partnership by acquiring approximately 3% of Farasis Energy’s shares for 900 million yuan, initiating joint battery development efforts.
However, Farasis Energy’s batteries have previously been associated with fire risks, leading to a recall in China. In March 2021, the state-owned Beijing Automotive Group (BAIC) recalled 31,963 electric vehicles equipped with Farasis batteries, citing the “possibility of battery fires under specific conditions.”
Farasis Energy acknowledged the defect and bore the full cost of the recall.
Kevin Lee (kevinlee@koreabizwire.com)
