Home / Business and Economy / Mercedes Fined for Hiding EV Battery Source
Mercedes Fined for Hiding EV Battery Source
10 Mar
Summary
- Mercedes-Benz fined 11.2 billion won for misleading consumers about EV battery suppliers.
- Some Mercedes EV models used Farasis Energy battery cells, not just CATL as stated.
- The fine is equivalent to 4% of related sales, the maximum allowed penalty.
South Korea's antitrust regulator has imposed a fine of 11.2 billion won (approximately $7.61 million) on Mercedes-Benz for misleading consumers regarding the battery suppliers used in certain electric vehicles. The Korea Fair Trade Commission (FTC) found that internal sales guidelines provided to dealers incorrectly suggested that all EQE and EQS electric vehicles were equipped with battery cells from China's Contemporary Amperex Technology Co Ltd (CATL).
However, some Mercedes EV models were actually fitted with battery cells supplied by China's Farasis Energy. This crucial information was omitted from the sales guide, thereby concealing it from both dealers and consumers. The FTC launched an investigation after a Mercedes EV involved in a fire in August 2024 contained Farasis battery cells.
Approximately 3,000 vehicles sold between June 2023 and August 2024 were equipped with these undisclosed Farasis battery cells, totaling about 281 billion won in sales. The 11.2 billion won fine equates to roughly 4% of the related sales, representing the maximum penalty permissible for such unfair business practices under South Korean law. Both Mercedes' German headquarters and its Korean unit will jointly pay the fine and are being referred to prosecutors.
