STUTTGART, Germany -- Following a fire involving a Mercedes-Benz EQE electric vehicle in South Korea in August, executives are defending their use of batteries from Chinese supplier Farasis Energy, even as investigations continue to probe the cause of the incident. The August fire, which occurred in the basement of an apartment building in Incheon, has raised questions around the safety of the vehicle's battery cells and the automaker’s quality control practices.

During an Oct. 21 media roundtable at Mercedes-Benz Group's headquarters in Stuttgart, senior executives Dr. Uwe Keller, head of battery development, and Dr. Carsten Breckner, head of global powertrain procurement and supplier management, spoke with Korean reporters to address the issue. While insisting that stringent quality control measures are in place, the executives offered limited specifics on the ongoing investigation or any potential changes to battery sourcing.

Stressing battery quality standards

Dr. Keller did not directly address whether opting for Farasis over more established names involved compromises; instead, he emphasized the brand’s extensive quality control practices.

“Even though the battery cells are supplied by battery makers like Farasis, the battery pack itself is defined and designed by Mercedes. We work closely with suppliers to ensure their modules meet our specifications,” he said.

He outlined a multistep quality assurance process that includes standardized tests, frequent factory visits and detailed product inspections. However, he still did not provide a clear answer as to why Farasis, a supplier with a lower global profile, was selected over larger and more reputable battery manufacturers.

Ongoing investigation

The incident has fueled allegations that Mercedes may have been aware of potential issues with Farasis batteries. A South Korean consumer group has filed a lawsuit, accusing the company of covering up known defects. Dr. Keller dismissed these allegations, stating that the battery involved in the fire was subject to the same quality checks as all other EV batteries used by Mercedes.

"The battery design in question is consistent across our electric vehicle lineup," he said, while also denying any deviations in quality standards for the Farasis-supplied cells.

Yet, when pressed on whether the fire pointed to a deeper issue with the batteries, Dr. Keller was less conclusive. He suggested that the problem did not appear to stem from the battery design but provided little detail to back up this assertion.

"The protective measures against thermal runaway are the same for Farasis batteries as they are for other suppliers," he added, reiterating standard safety protocols.

The South Korean National Forensic Service also suggested in a September report that external impact damage might have triggered the EQE fire, possibly from something striking the battery cells beneath the car.

Mercedes-Benz declined to comment on these specifics, citing the ongoing investigation. “We conduct comprehensive crash and crush tests to simulate various impact scenarios,” Dr. Keller said.

Continued partnership with Farasis

Despite the controversy, Mercedes-Benz confirmed that it would continue sourcing battery cells from both Farasis Energy and CATL for its current EV lineup, which includes models such as the EQE and EQS, and their respective SUV variants. These vehicles are built on the EVA2 platform, which has been in use since 2021.

Dr. Breckner, responsible for global powertrain procurement, said, "We will continue working with Farasis and CATL for now, but should the investigation in Korea reveal new insights, we might have to adapt."

The battery fire incident has heightened concerns among Korean consumers, the fourth-largest market for Mercedes-Benz globally in terms of sales volume. Accompanying Korean reporters during the Stuttgart media roundtable, Mathias Vaitl, CEO of Mercedes-Benz Korea, acknowledged the consumer unease and vowed to win back trust.

“We are taking this issue very seriously. It’s not an easy situation, but we are determined to reassure our customers in Korea,” Vaitl said.