South Korea Fines Mercedes $7.6 Million Over Misleading EV Battery Information

SNN – South Korea’s antitrust regulator has fined Mercedes-Benz 11.2 billion won (about $7.6 million) for misleading consumers about the battery suppliers used in some of its electric vehicles.

The Korea Fair Trade Commission (FTC) said the automaker provided sales guidance to dealers indicating that all EQE and EQS electric vehicles were equipped with battery cells produced by China’s Contemporary Amperex Technology Co Ltd (CATL), the world’s largest EV battery manufacturer.

However, the regulator found that some of the vehicles were actually fitted with battery cells supplied by Farasis Energy, another Chinese battery company. According to the FTC, this information was not included in the internal sales guidelines and was not disclosed to dealers or consumers.

The investigation began after authorities discovered that a Mercedes electric vehicle involved in a fire at an underground parking garage in Incheon in August 2024 was equipped with a Farasis battery cell.

Industry data from SNE Research shows that CATL held about 39% of the global EV battery market in 2025, while Farasis Energy did not rank among the world’s top ten suppliers.

The FTC said approximately 3,000 vehicles containing Farasis battery cells were sold between June 2023 and August 2024, generating around 281 billion won in sales.

The 11.2 billion won penalty — roughly 4% of the related sales value — represents the maximum fine permitted under South Korean law for this type of unfair practice. An FTC official said the penalty will be paid jointly by Mercedes’ headquarters in Germany and its South Korean unit.

In addition to the fine, the regulator said it plans to refer both the German headquarters and the Korean subsidiary to prosecutors, stating that both entities were involved directly or indirectly in creating and distributing the misleading sales guidelines.