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How one South Korean garage fire could affect the EV market

More transparency and tougher regulations are likely to follow for makers of electric cars and batteries

Battery fires in electric cars have been among the worst horror stories from critics of the vehicles. Dramatic video footage of a fire erupting from a parked, unplugged Mercedes EV in the basement of a South Korea apartment complex has become a visual representation of those fears. This event, which damaged 880 other cars in the car park, could start to change disclosure regulations for makers of EVs and batteries around the world.

The South Korean units of Mercedes-Benz and German rival BMW disclosed the names of the battery makers that supply their EV batteries for the first time this week. This is a rare but important move: the information has long been kept a closely guarded secret for many EV makers. For Mercedes, this is an attempt to staunch the flow of bad press in a market reported to be the second largest for its high-end Maybach brand. One in every 18 cars sold in South Korea is a Mercedes.

It is important not to overstate the risks here. In the US, one of the biggest EV markets in the world, electric vehicles were involved in about 25 fires for every 100,000 sold, compared with 1,530 for gasoline cars and 3,475 for hybrids, according to data from the US National Transportation Safety Board.

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