Hyundai to recall Kona EV over battery fire concerns: South Korea ministry

[SEOUL] South Korea's transport ministry said on Thursday Hyundai Motor will voluntarily recall its Kona electric vehicles as a possible short circuit due to faulty manufacturing of its high-voltage battery cells could pose a fire risk.

The voluntary recall starting Oct 16, which includes software updates and battery replacements after inspections, involves 25,564 Kona electric vehicles (EVs) built between September 2017 and March 2020, the transport ministry said in a statement.

A spokesperson for Hyundai Motor said she is checking the matter and did not have an immediate comment.

Some 13 cases of fire involving the Kona EV, including one each in Canada and Austria, were documented so far, according to a statement by ruling party lawmaker Jang Kyung-tae's office on Thursday.

Kona EVs used batteries made by LG Chem. An LG Chem spokesperson said the company did not have an immediate comment.

The company's shares fell 1.4 per cent compared to a 0.2 per cent rise in the benchmark Kospi, reflecting investor concerns the recall and battery replacements could be costly, as batteries take up about 30 per cent of an EV's price, analysts said.

In contrast, LG Chem shares rose 1.8 per cent.

The Kona Electric is the South Korean automaker's first long-range subcompact SUV EV.

In July, Hyundai Motor Group leader Euisun Chung said Hyundai Motor and Kia Motors aim to sell one million battery-driven electric vehicles in 2025, together targeting more than 10 per cent of the global market share for such vehicles.

REUTERS