SEOUL — Hyundai Motor Co. is being sued over a string of battery fires in its electrical autos simply as Basic Motors remembers almost 70,000 EVs with batteries from the identical maker, LG Chem Ltd.

The proprietor of a Hyundai Kona EV, a South Korean civil servant who requested to be recognized solely by his surname Kim, is amongst some 200 individuals who lodged a lawsuit searching for class-action standing towards Hyundai final week, searching for compensation for what they are saying is the diminished worth of their EVs and different losses, Kim and two legal professionals representing them instructed Reuters.

The court docket submitting just isn’t a public file.

Kim had initiated a petition drive to sue the Seoul-based automaker after the identical model of EV caught fireplace in his neighborhood, forcing about 20 residents to evacuate their properties.

One of many legal professionals stated they have been initially searching for 8 million received ($7,200) per plaintiff however they may improve demand because the trial proceeds.

The plaintiffs need Hyundai to exchange all the battery pack — the costliest a part of the car — of their Kona EVs, not simply replace the software program, as the corporate’s recall supplies.

EV gross sales are climbing globally because the expertise holds out the promise of cleaner transportation, with prices falling and driving ranges rising. However the rising threat of fireside from overheated batteries may set again the trade.

Remembers may imply reputational in addition to monetary injury to Hyundai and different automakers, that are pushing into the EV market to satisfy harder emissions rules and to problem market chief Tesla Inc. The issues may additionally dent client demand for EVs.

“A battery that isn’t secure is sort of a bomb,” stated Park Chul-wan, a South Korean battery skilled.

A collection of fires involving automakers, together with GM, BMW and Ford Motor Co , expose the problem the trade faces in managing the dangers of latest expertise and the pressures to spice up battery manufacturing and efficiency.

GM stated on Friday it was recalling 68,677 EVs with LG Chem batteries, after 5 reported fires and two minor accidents. Hyundai has recalled globally greater than 74,000 Kona EVs, its top-selling electrical automobile, after 16 of them caught fireplace in South Korea, Canada and Europe in two years.

South Korea’s security company is investigating the reason for the Kona fireplace, and relying on the outcomes, Hyundai and LG Chem may face prices as much as $540 million if they’ve to exchange all of the affected batteries, analysts reckon.

In a press release to Reuters, Hyundai stated the reason for fireplace is unclear however it suspects that inner injury to batteries could also be guilty, including that it’s investigating the case with its provider and the transport ministry.

Hyundai stated it isn’t contemplating setting apart cash for remembers because it expects its software program repair will be capable to stop fires by detecting issues.

“We’re continually monitoring the state of affairs after an replace of the (battery administration system) and we’ll proceed to attempt to reduce client inconveniences going ahead,” Hyundai stated.

A LG Chem spokesman stated, “We’ll cooperate with Hyundai Motor and Basic Motors and sincerely proceed with an investigation to determine the precise trigger” of the hearth.

LG Chem CEO Hak Cheol Shin instructed Reuters final month that the battery system could be very advanced, suggesting issues could also be brought on by different parts made by Hyundai’s suppliers.

“As a provider of a key part of the battery system, we clearly really feel accountability. However till a transparent trigger could be decided, we will’t give you measures to deal with the issues,” he stated.

Along with the issues at Hyundai and GM, Ford lately supplied to exchange the battery packs of its Kuga plug-in hybrid car over fireplace dangers, saying this might value the automaker $600 million within the second half, together with a price to satisfy Europe’s emissions rules.

Ford and BMW have recalled autos utilizing Samsung SDI Co batteries, citing cell manufacturing defects. A Samsung SDI spokesman stated investigations are below means into the reason for the fires.

Tesla was investigated by a U.S. security authorities over a battery software program improve of some autos following car fires.

‘Scared’

Hyundai and LG Chem are at odds over the basis reason for the fires as South Korea’s security company investigates the case. LG denies the battery cells are faulty.

The plaintiffs are urgent Hyundai to take extra decisive motion. “Whereas acknowledging flaws within the batteries, your organization has been counting on the fallacious coverage – software program substitute, which is barely a brief repair – to purchase time,” they are saying in a letter to the carmaker, seen by Reuters.

A 35-year-old girl, who requested to be recognized solely by her surname Shin, stated she needed to evacuate her condo advanced at daybreak together with her child in a stroller final month after a Kona EV caught fireplace and engulfed the underground lot in flames.

“The stench of burned electronics and smoke swept via the entire neighborhood,” Shin instructed Reuters.

Earlier than the hearth, she believed EVs have been good for the surroundings. Now, she says, she tells her kin to not purchase them.

“Electrical autos have simply turn out to be one thing I am so afraid of.”