Korean Battery 'Defective Product' Certified by Government... Became Prey to Chinese and Japanese Competitors

[Asia Economy Reporters So-yeon Park and Sang-don Joo] The public-private joint investigation team examining five energy storage system (ESS) fires concluded that four of the incidents were caused by 'battery abnormalities,' stigmatizing Korean-made batteries?ranked first and second globally in the ESS sector?as 'defective products.' Critics argue that in this fiercely competitive future growth industry, the Korean government has inadvertently turned its companies into 'prey' for competitors.

According to the battery industry on the 7th, the ESS fire second investigation team identified the causes of five ESS fires that occurred between August and October last year as 'battery abnormalities (4 cases)' and 'external foreign object contact (1 case).'

Korean Investigation Team Judged 'Defective Products' Based on Assumptions

The investigation team concluded 'battery abnormalities' by synthesizing evidence such as traces of melting (the phenomenon of objects melting and mixing) found in batteries collected from the scene, which appear during internal ignition, and records indicating that battery protection functions did not operate. They particularly estimated that fires occurred due to a combination of operating the maximum charge rate excessively above 95% and battery abnormalities.

Kim Jae-cheol, co-head of the investigation team and professor of electrical engineering at Soongsil University, explained, "The assumption of battery abnormalities means that some batteries had minor issues during manufacturing, combined with operational problems such as overcharging, overdischarging, and low voltage, which could cause problems if the batteries continue to be used."

The industry immediately responded, stating, "The battery is not the direct cause," and strongly opposed the conclusion, saying, "Concluding 'battery abnormalities' based solely on probability and assumptions is technically and ethically wrong." However, no additional opportunities for explanation were given to the industry following this final investigation.

Fierce Competition Among Korea, China, and Japan Raises Concerns Over 'Blackmail' Tactics

The industry expects this announcement to negatively impact overseas project bids. Currently, Samsung SDI and LG Chem compete for the top global market share in ESS batteries. Combined, these two companies hold over 50% of the global market share. Consequently, competitors closely monitor Korean companies, and concerns about the concentration of Korean batteries are growing in Europe and other regions.

To make matters worse, the final investigation result attributing fires to battery abnormalities deals a critical blow to global bidding efforts. The industry fears that this outcome will be exploited as 'blackmail' material to disparage rival companies in the intense global bidding competition.

An industry insider said, "Competitors like BYD (China) and Sony (Japan) are aggressively expanding their market share in the ESS sector," adding, "It is obvious that competitors will exploit the Korean investigation team's findings in bidding wars to expand their shares in European and American markets."

Another insider commented, "Overseas customers might refuse to purchase batteries after seeing the government investigation results," and added, "Since fires have not occurred overseas with the same batteries, blaming the batteries has only created unwarranted anxiety in the market."

Samsung SDI and LG Chem Choose to 'Face the Challenge Head-On' with Technology

The battery industry plans to use this fire incident as an opportunity to guarantee ESS safety. LG Chem has decided to voluntarily replace all batteries produced at its Nanjing plant in China in 2017. It also plans to install a self-developed special fire suppression system at ESS sites.

Samsung SDI is also forming an 'ESS Safety Enhancement Task Force (TF)' to conduct thorough on-site inspections. The installation of the special fire suppression system, which began in October last year, is scheduled to be completed within the first half of this year. Overseas, based on trust with existing clients, they have chosen to 'face the challenge head-on' with upgraded product designs and technological capabilities.

An industry official said, "We are continuously upgrading battery designs, and these efforts are recognized by our clients, so ultimately, Korean companies have no choice but to overcome challenges through technological prowess."

This content was produced with the assistance of AI translation services.