Hyundai To Replace 82,000 EV Battery Systems In Expensive Recall: Reuters

Author: Anusuya Lahiri | February 24, 2021 07:16am

Hyundai Motor Co (OTC: HYMLF) (OTC: HYMLY) (OTC: HYMOF) (OTC: HYMPF) (OTC: HYMPY) will replace battery systems in close to 82,000 electric vehicles globally due to fire risks leading to a product recall, Reuters reports. The product recalls (including one earlier) recall could cost around $900 million to the company.
The majority of the latest recall applied to its popular electric car, the Kona EV, since October over a software upgrade after a series of fires. The recent recall includes around 76,000 Kona EVs and some Ioniq EV and Elec City models.
South Korean authorities initiated an investigation to judge the first recall’s adequacy as one of the recalled vehicles caught fire.
LG Chem Ltd (OTC: LGCLF) division LG Energy Solution responsible for the battery manufacture blamed Hyundai for the mishandling of LG’s suggestion regarding fast-charging logic in Hyundai’s battery management system. They also added that the battery cell should not be considered as the primary reason behind the fire.
Reuters notes that the recall is one of the first mass battery pack replacements conducted by a major automaker. How Hyundai and LG handle the recall could set a precedent not only in South Korea but globally.
There have been reported around 15 instances of fires involving the Kona EV - 11 in South Korea, two in Canada, and one each in Finland and Austria.
The first recall accounted for 38.9 billion won out of the total 1 trillion won in estimated recall costs ($1 is equivalent to 1,111.7900 won).
Price action: HYMLF shares closed at $89 on Tuesday.
Image Courtesy: Wikimedia
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