After a few fires, Hyundai will replace the batteries in all Kona, Ioniq EVs and Elec City buses. GM owners are wondering if they will achieve the same thing, while most believe in a software fix.
As we broke the news last week, Hyundai has officially announced that they will replace all LG batteries at:
- 75,680 Kona EV electric cars
- 5,716 Ioniq electric cars
- 305 Elec City buses
It seems 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. Although a temporary software fix was applied, its effectiveness was questionable; another Kona with the fix caught fire last month.
Until Hyundai can replace the battery, they are recommending owners not to charge beyond 90% of capacity. If that sounds familiar, it’s because GM did exactly the same thing with the Bolt EV.
Hyundai breaks the silence
We commend Hyundai for this initiative and request comments. They responded with an official statement:
Hyundai Motor Company decided to voluntarily withdraw some Kona Electric, Ioniq EV and Elec City vehicles in Korea for complete battery replacements (BSA: battery system assembly). The decision reflects the results of an investigation conducted by the Korean government, which revealed the possibility of short circuits in certain defective battery cells produced at LG Energy Solution’s Nanjing plant, leading to fires.
Actions will be taken promptly to avoid any inconvenience to the customer and the company will continue to prioritize the safety of its customers. Similar announcements will be made for affected vehicles in other markets, in accordance with local regulations and guidelines.
Hyundai’s official statement on the matter
What’s the fault?
Unfortunately, Hyundai did not provide details on the cause or scope of the implementation. We were expecting an announcement last Friday; now they will wait for the Korean transport ministry’s investigation into the matter to be completed. The suspicion is that cell separators are to blame – read our previous coverage for in-depth analysis.
Battery replacements are expected to be made worldwide. However, as we reported earlier, it can take one to two years to supply and replace all affected batteries.
LG Energy Solutions (LGES), the LG Chem division that builds the cells, is being spun off. They redirected criticism of the problem to Hyundai, claiming that the battery is 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 seems that the two companies may be fighting a prolonged battle over the cost sharing of the recall. It can be assumed that they may also involve the cell separator manufacturer.
The estimated cost for Hyundai is about 1 trillion won ($ 900 million, $ 1.13 billion CAD). This is less than previous estimates, which were twice that. Perhaps Hyundai and LG have already decided on a 50/50 division; unfortunately, the exact details are likely to be kept secret.
Setting an industry precedent
LG’s deflection is somehow expected; if they admitted the failure, they would probably stay on the hook for another manufacturer’s replacements as well. Regardless, this is likely to create an expectation in the industry for battery replacements.
GM is still facing its own recall, but has opted (at least for the moment) for a software fix. Hyundai’s decision to replace the batteries contrasts with that. However, if the previously reported cause (cell separators) is really the case, that may be the reason. GM informed us that they do not use the same separator as Hyundai. This may explain why GM is convinced that a software fix may be sufficient.
A tumultuous time
GM is at a very weak point in its history now. The company has just announced its updated Bolt EV and the new Bolt EUV. GM has pledged to go fully electric by 2035, with 30 new vehicles expected by 2025. They simply cannot afford to make any mistakes now without losing billions in the future.
Hyundai has also just announced its new line of Ioniq 5. Although the specifications look impressive, the price will certainly match.
Interestingly, these two ads can serve as complementary rather than competitive ones; they will likely suit different price ranges and segments. Both GM and Hyundai are very committed to their electric future. This is definitely a difficult thing for them to do now. We can expect that intensifying the replacement of all batteries will build loyalty and install faith in the Hyundai brand.
GM owners seem to have faith
An informal poll in the Chevy Bolt EV and EUV Owners group on Facebook shows an interesting picture. Nearly 700 people responded in three days, although that was before Hyundai announced its replacement decision. Although some of the first Bolt users are very expressive and require replacements, 58% agree to have a software-only solution. Another 24% would like to have more information before making a decision. Although it is not a formal survey, it does indicate something strongly. As long as GM can give a satisfactory explanation of how they are fixing the problem, at least 80% of owners will be fine without replacing the battery.
Electrek’s Take
This is the crucial point – can GM give a good explanation? Is that enough? Will they compensate the owners?
80% satisfaction can easily drop to 50/50 if GM is not open with its owners. Either way, unless there is some financial compensation, GM will have created animosity among its owners while Hyundai is taking the high road.
It’s great that Hyundai is moving forward and moving forward with the replacements, and they should be applauded for that. Despite LG’s explanation, it is unlikely that so many platforms (including their own stationary batteries) have systematic charging problems. Occam’s razor certainly applies here: LG cells are the common factor. It is a big blow for Hyundai to consider something that was ultimately not their fault.
Although the EV market is small, early users have understood very well that they are effectively on beta platforms. The owners endured many obstacles along the way. It is good to see a company rewarding its owners with new batteries. This should alleviate concerns and prolong the life of your vehicles.
Anyway, I hope this closes the chapter on these battery fires. As long as it no longer occurs, we can expect smooth sailing in your all-electric future.
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