A group of Mercedes-Benz electric vehicle (EV) owners in South Korea have sued the German automaker, alleging the company of providing misleading information over their vehicles’ battery cell supplier, their legal representative said on Thursday, reported Yonhap news agency.

Ha Jong-sun, an attorney at Seoul-based law firm Naru, announced that 24 Mercedes-Benz EQE EV owners had filed joint damages claim with the Seoul Central District Court against company headquarters, its South Korean sales unit, and seven dealership firms in the country.

The initial claim was for 10 million won (US$7,408) per plaintiff, with plans to increase the amount after the Fair Trade Commission announces the results of an investigation into the alleged false advertising by Mercedes-Benz.

The topic of EV battery cell suppliers has been a closely watched matter within the auto industry recently, following a massive fire caused by a Mercedes-Benz EQE model that ended up damaging over 100 vehicles and destroying an underground apartment parking garage in Incheon, west of Seoul, in August.

To the surprise of many, battery cells used in the EV in question turned out to be from Farasis Energy, a Chinese firm ranked around 10th globally.

Plaintiffs claimed that while most EQE models were revealed to be equipped with battery cells from Farasis Energy, Mercedes-Benz allegedly deceived consumers by suggesting the vehicles were fitted with cells from CATL, the global leader in EV battery sales.

They also pointed out how Christoph Starzynski, former Mercedes-Benz vice president of car engineering, was quoted as saying in an interview with South Korean news outlets in April 2022, that battery cells in EQE vehicles would be supplied by CATL.

Additionally, the plaintiffs claimed that Mercedes-Benz knowingly concealed purported shortcomings in Farasis battery cells and sought punitive damages.

They alleged that despite the high energy density of Farasis cells, which increases the risk of thermal runaway, the company failed to implement appropriate designs or safety mechanisms.

Ha argued, “Mercedes-Benz either knew about these defects or, at the very least, became fully aware of them following the Incheon parking lot fire, yet still failed to conduct a recall, thereby concealing the defects.”

“Mercedes should be held liable for punitive damages amounting to 350 million won, which is five times the cost of replacing each battery pack,” Ha said.