Korea weighs differential EV subsidies as safety concerns grow

[Photo by Yonhap]

The South Korean government is weighing various levels of subsidies for EVs based on battery safety and a requirement for EV makers to disclose the brand of batteries in vehicles as the number of fires involving electric vehicles (EVs) increases.

According to a report by Maeil Business Newspaper on Thursday, the Ministry of Environment is exploring a plan to assess the safety of batteries from different EV makers and offer subsidies based on safety levels. This assessment could involve sampling tests for each battery.

In addition, the Ministry of Land, Infrastructure and Transport is considering a plan to require EV makers to disclose the brand of batteries they use in cars.

Auto manufacturers in South Korea must provide specific vehicle details such as size, weight, and fuel efficiency. As details remain limited in terms of batteries, the EV makers do not disclose the name of the battery manufacturers, with some citing trade secrets as the reason.

There has been a surge in fires involving EV batteries as the government fails to come up with preventative measures. Data from the Korea Transportation Safety Authority, the Korean public organization in charge of transportation safety, shows that 94 electric vehicle fires occurred from 2020 through August 2023, with 51 of these attributed to battery issues.