Korean battery companies are facing the shock of "electric car phobia.

South Korea's "Central Daily" reported on the 8th that a series of electric vehicle fires in South Korea recently caused deep concern among battery manufacturers in South Korea. On August 1, a Mercedes-Benz all-electric car caught fire in the underground parking lot of an apartment building in Incheon; A Kia EV6 electric vehicle equipped with batteries from SK On, a South Korean battery manufacturer, caught fire at a parking tower in South Chungcheong Province on Monday. The succession of these events is like another heavy knock on the already sensitive nerves of the market. Frequent fire incidents have also made people increasingly afraid of electric vehicles.

According to detailed statistics from the Ministry of Land, Infrastructure and Transport and the Korea Fire and Rescue Agency, the number of fires registered per 10,000 vehicles last year was 1.47 for fuel vehicles and 1.32 for electric vehicles. However, it is worth noting that the property damage caused by each fire in a fuel vehicle was 8.69 million won (about 45,000 yuan), while that of an electric vehicle was 20.33 million won, more than twice that of a fuel vehicle. Such a huge loss gap undoubtedly left a more profound and indelible impression on consumers. In the face of such a severe situation, the Ministry of Environment announced on the 8th that it will hold a meeting on countermeasures against electric vehicle fire on the 12th in order to eliminate people's fear of electric vehicles. The government plans to discuss related measures at this meeting and announce fire prevention measures for electric vehicles early next month. This series of measures shows the South Korean government's determination and sense of urgency to solve this problem.

According to South Korea's "Daily Economy" reported on the 8th, if the "electric car phobia" continues to spread, it will further drag down the recovery of the entire industry. In the second quarter of this year, South Korea's LG New Energy, Samsung SDI operating profit fell sharply, while South Korea's SK On is 11 consecutive quarters of losses. This series of data undoubtedly sounded the alarm for South Korean battery manufacturers.

In the global market competition, South Korean battery manufacturers are also facing great pressure. According to a report released by energy market Research firm SNE Research on Monday, LG NEenergy ranked third in the global electric vehicle battery market share in the first half of this year, accounting for 12.9 percent, down 2.0 percentage points from the same period last year. Fourth-ranked SK On fell to 4.8 percent from 5.5 percent, while Samsung SDI, ranked sixth, fell to 4.5 percent from 4.7 percent. In sharp contrast, the share of No. 1 China Ningde Times increased from 35.7 percent to 37.8 percent, while No. 2 China BYD remained unchanged at 15.8 percent. The comparison of this data clearly reflects the disadvantage of Korean battery manufacturers in the market competition.

In this difficult situation, South Korean companies are actively taking various measures to try to reverse the situation. On the one hand, LG New Energy is committed to technological innovation, investing a lot of resources in the research and development of high nickel four-element lithium battery NCMA cathode material technology to meet the high mileage, and seeking breakthroughs in the efficient silicon-based anode material technology to improve the fast charging performance; On the other hand, the battery pack design is continuously optimized, and the battery safety diagnosis algorithm using cloud big data is developed to provide consumers with more reliable battery protection. Samsung SDI actively builds solid state battery test production lines, and strives to develop solid state batteries with sulfide-based electrolytes, in order to leapfrog in technology and enhance product competitiveness. SK On plans to expand the production of square batteries and develop cylindrical batteries in an attempt to expand the market by diversifying its products.

Although South Korean companies face many challenges, their positive attitude and a series of measures may be able to win a lifeline in the future market competition. However, whether it can really eliminate consumers' "electric car phobia" and regain a favorable position in the global market still needs time and market test.