Burning batteries will cost Hyundai $900 million

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RESTRICTIONS: Broadcast: NO USE JAPAN, NO USE TAIWAN Digital: NO USE JAPAN, NO USE TAIWAN
After just over a dozen of its cars caught fire, the automaker issued a recall for electric vehicles built before April 2020 that use the same LG Chem batteries.

RUNDOWN SHOWS:
1. Hyundai Kona Electric SUV in garage, smoke starts coming out of wheel well, then fire
2. Fire spreads, consumes front part of car, moves to back part, car burns out completely
3. Mechanics at repair shop wave Kona driver in until car stops under hoist, remove bonnet
4. Mechanics use tools to detach drivetrain from Kona, lift drivetrain from car
5. Inset box appears, fills screen, showing battery diagram, short circuit, fire
6. Fire in battery cell spreads to battery, uncontained battery fire spreads to rest of car

VOICEOVER (in English):
Bloomberg reports that Hyundai will recall 82,000 electric cars globally to replace their batteries. This comes after more than a dozen reports of fires involving the automaker's Kona SUVs.

The recall is for vehicles built before April 2020 that use the same LG Chem batteries.

Despite the relatively small number of cars involved, this recall is one of the most expensive in history, showing how battery defects could create hefty costs for automakers.

The recall will cost Hyundai 900 million US dollars. On a per-vehicle basis, the average cost is 11,000 dollars — which is a very high number for a recall.

Replacing an entire battery is an extreme measure, requiring a similar amount of work and expense as replacing an entire engine of a gasoline car.

The issue allegedly has to do with the material that separates the battery's cathode and anode.

General Motors recently recalled nearly 70,000 Chevy Bolts that also use LG Chem's batteries, after reports of fires.

News of the recall comes just one day after Hyundai unveiled its Ioniq 5 crossover SUV, which will not use LG Chem batteries.

SOURCES: Bloomberg, CNN, The Verge
https://www.bloomberg.com/news/articles/2021-02-24/hyundai-to-recall-82-000-electric-cars-globally-in-latest-blow
https://edition.cnn.com/2021/02/25/tech/hyundai-ev-recall/index.html
https://www.theverge.com/2021/2/24/22299121/hyundai-kona-electric-recall-battery-fire-lg