South Korea fines Mercedes $7.6 million over misleading EV battery information, after the country’s antitrust regulator concluded that the automaker misrepresented the battery suppliers used in some of its electric vehicles. The Korea Fair Trade Commission said Mercedes-Benz had promoted its EQE and EQS models as using battery cells from CATL, while failing to clearly disclose that some vehicles instead carried cells from Farasis Energy.
The regulator imposed a fine of 11.2 billion won, equivalent to about $7.61 million, and said this represented the maximum penalty allowed under law, equal to roughly 4% of the related sales. The KFTC said around 3,000 vehicles fitted with Farasis battery cells were sold between June 2023 and August 2024, generating about 281 billion won in sales.
According to the regulator, the issue was not simply about supplier substitution but about incomplete disclosure in materials used to guide dealers and influence buyers. The KFTC said sales guides and marketing materials created the impression that the EVs were equipped with CATL batteries, even though some units used Farasis cells instead.
The case gained added scrutiny after an August 2024 EV fire in Incheon, where authorities found that the vehicle involved used Farasis battery cells. That incident helped trigger the regulator’s investigation and turned battery-source transparency into a broader consumer-trust and safety issue in South Korea’s EV market.
Mercedes-Benz Korea said it respected the regulator’s decision but disagreed with the final ruling. The company added that it plans to pursue legal action, including an administrative lawsuit, and said it had communicated accurate information to both the media and customers. The KFTC also said it would refer both Mercedes’ German headquarters and its Korean unit to prosecutors over their role in preparing and distributing the sales guidance.
From a global EV industry perspective, this case underlines how battery supply disclosure is becoming a serious regulatory issue rather than a back-end sourcing detail. In the electric vehicle era, battery chemistry, supplier quality, and traceability are increasingly central to product trust, safety perception, and brand credibility.
Click here for more EV Updates
