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After a few fires, Hyundai will replace the batteries on all Kona, Ioniq EV and Elec City buses. GM owners are wondering if they’ll get the same, when most trust a software patch.
As we broke the news last week, Hyundai has now officially announced that it will be replacing all of its LG batteries in:
- 75,680 Kona EV electric cars
- 5,716 Ioniq electric cars
- 305 Elec City bus
It would appear that the Ioniq hybrids were spared.
This follows an approximate period of six months. There have been 15 reported cases of Kona EV fires, including 11 in South Korea and two in Canada. Even if an interim software fix was applied, its effectiveness was questionable; another Kona with the fix caught fire last month.
Until Hyundai can replace the battery, they recommend owners do not charge beyond 90% capacity. If this sounds familiar to you, it’s because GM did the exact same thing with the Bolt EV.
Hyundai breaks their silence
We congratulated Hyundai on this initiative and sought feedback. They responded with an official statement:
Hyundai Motor Company has decided to voluntarily recall certain Kona Electric, Ioniq EV and Elec City vehicles in Korea for full battery replacements (BSA: Battery System Assembly). The decision reflects the findings of an investigation by the Korean government, which revealed the possibility of short circuits in some faulty battery cells produced at the LG Energy Solution plant in Nanjing, resulting in fires.
Measures will be taken as soon as possible to avoid any inconvenience to customers and the company will continue to place the safety of its customers as the highest priority. Similar announcements will be made for affected vehicles in other markets, in accordance with local regulations and guidelines.
Official statement from Hyundai on this subject
What is the fault?
Unfortunately, Hyundai did not provide details on the cause or scope of the deployment. We expected an announcement last Friday; they will now wait until the Korean transport ministry’s investigation into the matter is completed. The suspicion is that cell separators are to blame – read our previous coverage for an in-depth analysis.
Battery replacements are expected to be worldwide. However, as we noted earlier, it can take up to one to two years to find and replace all affected batteries.
LG Energy Solutions (LGES), the LG Chem division that builds the cells, is being split up. They redirected criticism of the issue to Hyundai, saying the battery cell was not the cause of the fire. Instead, they insist, Hyundai misapplied LG’s suggestions for fast charging logic in the battery management system.
Who will pay?
It looks like the two companies could be engaged in a long battle over the cost-sharing of the recall. Presumably they could also involve the manufacturer of the cell separator.
The estimated cost to Hyundai is around 1 trillion won ($ 900 million, $ 1.13 billion). This is less than previous estimates, which were double. Maybe Hyundai and LG have already gone for a 50/50 split; unfortunately, exact details are likely to be kept secret.
Setting an industry precedent
LG’s deviation is somewhat predictable; if they admitted fault, they would probably also be at the mercy of replacements from other manufacturers. Either way, it will likely create a wait in the industry for battery replacement.
GM is still facing its own recall, but has opted (at least for now) for a software fix instead. Hyundai’s decision to replace the batteries initially contrasts. However, if the previously reported cause (cell separators) is actually the case, this may be why. GM informed us that they do not use the same splitter as Hyundai. This may explain why GM is convinced that a software patch may be sufficient.
A tumultuous time
GM is currently at a very fragile point in its history. The company just announced its refreshed Bolt EV and all-new Bolt EUV. GM has pledged to go electric by 2035, with 30 new vehicles expected by 2025. They just can’t afford mistakes just yet without losing billions in the future.
Hyundai also just announced its new Ioniq 5 lineup. While the specs are impressive, the price is sure to match.
It is interesting to note that these two announcements can serve as complementarity rather than competition; they will likely serve different price points and segments. GM and Hyundai are both very committed to their electric future. It is certainly a difficult thing for them to do at the moment. We can hope that the replacement of all batteries will boost loyalty and instill confidence in the Hyundai brand.
GM owners seem to trust
An informal poll on the Chevy Bolt EV and EUV Owners Facebook group paints an interesting picture. Nearly 700 people responded in three days, although that was before Hyundai announced its replacement decision. While some of the early Bolt users are very picky and very demanding replacements, 58% agree with a software-only solution. Another 24% would like more information before making a decision. While this is not an official poll, it says something strongly. As long as GM can give a satisfactory explanation of how they solve the problem, at least 80% of owners will be okay with no battery replacement.
Taking Electrek
This is the knot – can GM provide a good explanation? Will this be enough? Will they compensate the owners?
The 80% satisfaction could easily drop to 50/50 if GM is not open with its owners. Either way, unless there is financial compensation, GM will have created animosity among their owners as Hyundai takes the higher path.
It’s great that Hyundai is stepping up and moving forward with the replacements, and they should be applauded for it. Despite LG’s explanation, it’s unlikely that so many platforms (including their own stationary battery products) all have systematic charging issues. Occam’s razor surely applies here: LG cells are the common factor. It is a great success for Hyundai to take for something that was ultimately not their fault.
Although the market for electric vehicles is small, early adopters realized that they were indeed on beta platforms. The owners suffered numerous bumps along the way. It’s nice to see a company rewarding its owners with new batteries. This should alleviate concerns and extend the life of their vehicles.
Either way, hopefully this concludes the chapter on those battery fires. As long as there are no more, we can hope for a smooth navigation in their all-electric future.
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