After a few fires, Hyundai will replace batteries in all buses from Kona, Ioniq and Elec City. GM owners are wondering if they will get the same thing, while most have confidence in a software solution.
When we announced the news last week, Hyundai has now officially announced that they will be replacing all of their LG batteries in:
- 75,680 Kona EV electric motors
- 5,716 Ioniq electric motors
- 305 Elec City Buses
It looks like the Ioniq hybrids have been spared.
This follows a rough period of six months. Fifteen cases of Kona EV fires have been reported, including 11 in South Korea and two in Canada. While a temporary software solution was applied, its effectiveness was questionable; another Kona with the solution just caught fire last month.
Until Hyundai can replace the battery, they recommend the owners not to charge more than 90% capacity. If this sounds familiar, it’s because GM did exactly the same with the Bolt EV.
Hyundai breaks their silence
We commended Hyundai for this initiative and sent out for comment. They respond with an official statement:
Hyundai Motor Company has decided to voluntarily recall certain Kona Electric, Ioniq EV and Elec City vehicles in Korea for the replacement of full batteries (BSA: battery system). The decision reflects the findings of an investigation led by the Korean government, which revealed the possibility that short circuits in certain defective battery cells produced in LG Energy Solution’s Nanjing plant could lead to fires.
Immediate action will be taken to prevent customers’ inconvenience, and the company will continue to prioritize the safety of its customers. Similar announcements will be made for vehicles affected in other markets, in accordance with local regulations and guidelines.
Hyundai’s official statement on the matter
What is the fault?
Unfortunately, Hyundai does not provide any details as to cause or extent. We were expecting an announcement last Friday; they will now wait until the investigation by the Korean Ministry of Transport into the issue is completed. The suspicion exists that the shells of cells have the separation – read our previous coverage for an in-depth analysis.
The battery replacements are expected to be worldwide. However, as we previously reported, it can take one to two years to replace and replace all batteries involved.
LG Energy Solutions (LGES), the LG Chem division that builds the cells, is being stretched. They have diverted criticism on the issue to Hyundai, claiming that the battery cell is not the cause of the fire. Instead, he claims that Hyundai misapplied LG’s proposals for fast charge logic in the battery management system.
Who will pay?
It seems that the two companies may be locked in a protracted battle over cost sharing of the repeal. One can assume that they can also involve the manufacturer of a cell separator.
The estimated cost for Hyundai is about 1 billion won ($ 900 million USD, $ 1.13 billion CAD). This is less than the previous estimates, which were twice as many. Perhaps Hyundai and LG have already decided on a 50/50 split; Unfortunately, the exact details will probably be kept secret.
To set a precedent in the industry
The deflection of LG is somewhat to be expected; if they admit guilt, they will probably be on the hook for replacing other manufacturers as well. Regardless, it will likely create an expectation in the industry for battery replacements.
GM is still facing their own recall, but would rather (at least currently) opt for a software solution. Hyundai’s decision to replace the batteries is opposed. However, if the cause previously reported (cell separators) is indeed the case, it may be the reason. GM told us that they do not use the same separator as Hyundai. This may explain why GM is convinced that a software solution may be sufficient.
A turbulent time
GM is currently at a very fragile point in its history. The company has just announced its refreshed Bolt EV and brand new Bolt EUV. GM is committed to being fully electric by 2035, with 30 new vehicles expected by 2025. They simply cannot afford mistakes right now without losing billions in the future.
Hyundai has also just announced their new Ioniq 5 Series. Although the specifications look impressive, the price will definitely match.
Interestingly, these two announcements can serve as complementary rather than competitive; they are likely to serve different price points and segments. Both GM and Hyundai are very committed to their electric future. It is definitely a difficult thing for them to do now. We can hope that increasing the replacement of all batteries will create loyalty and create confidence in Hyundai’s brand.
GM owners seem to have confidence
An informal poll on the Chevy Bolt EV and EUV owners’ Facebook group paints an interesting picture. Nearly 700 people responded over three days, although Hyundai announced their replacement decision. Despite the fact that some early Bolt fans are very outspoken and demanding substitutes, 58% are okay with a software solution. Another 24% would like more information before making a decision. Although it is not a formal poll, it strongly suggests something. As long as GM can give a satisfactory explanation of how they solve the problem, at least 80% of the owners will be right without replacing the battery.
Electrek’s Take
That’s the point – can GM give a good explanation? Will that be enough? Will they compensate owners?
The 80% satisfaction can easily shift to 50/50 if GM is not open to their owners. Either way, unless there is financial compensation, GM will create hostility among their owners while Hyundai takes the higher road.
It’s great that Hyundai is acting and continuing with the replacements, and they should be applauded for that. Despite LG’s explanation, it’s unlikely that so many platforms (including their own stationary battery products) would all have systemic charging issues. Occam’s razor certainly applies here: LG’s cells are the common factor. It’s a big hit for Hyundai to do something that ultimately was not their fault.
Although the EV market is small, early adopters realized very well that they are effective on beta platforms. Owners have suffered many bumps. It’s nice to see a company reward their owners with new batteries. This should alleviate the worries and extend the life of their vehicles.
Either way, hopefully this will close the chapter on these battery fires. As long as there is no more happening, we can hope for a smooth ride in all their electrical future.
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