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Hyundai to recall Kona EV over faulty battery cells: South Korea ministry

Hyundai to recall Kona EV over faulty battery cells: South Korea ministry

FILE PHOTO: The logo of Hyundai Motor is pictured at the second media day for the Shanghai auto show in Shanghai, China April 17, 2019. REUTERS/Aly Song

SEOUL: Hyundai Motor Co will voluntarily recall its Kona electric vehicles as a possible short circuit due to faulty manufacturing of its high-voltage battery cells could pose a fire risk, South Korea's transport ministry said on Thursday.

Starting Oct. 16, the recall, which includes software updates and battery replacements after inspections, involves 25,564 Kona electric vehicles (EVs) built between September 2017 and March 2020, the transport ministry said in a statement.

The safety recall "is a proactive response to a suspected defective production of high-voltage batteries used in the vehicles, which may have contributed to the reported fires", the company said, adding that it will deploy all necessary measures to identify the cause of the fire and address customers' needs.

Some 13 incidents of fire involving the Kona EV, including one each in Canada and Austria, were documented so far, according to a statement by ruling party lawmaker Jang Kyung-tae's office on Thursday.

Kona EVs use batteries made by LG Chem Ltd. An LG Chem spokesman said the company did not have an immediate comment.

Hyundai's shares fell 1.4per cent, reflecting investor concerns that the recall and battery replacements could be costly, as the battery takes up about 30per cent of an EV's price, analysts said.

In contrast, LG Chem shares rose 1.8per cent.

The Kona Electric is the South Korean automaker's first long-range subcompact SUV EV.

In July, Hyundai Motor Group leader Euisun Chung said Hyundai Motor and sister company Kia Motors aim to sell 1 million battery-driven electric vehicles in 2025, targeting more than 10per cent of the global market share for such vehicles.

(Reporting by Joyce Lee; Writing by Heekyong Yang; Editing by Krishna Chandra Eluri and Sherry Jacob-Phillips)

Source: Reuters


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