Finance
South Korea fines mercedes $7.6 million over misleading EV battery information
Published by Global Banking & Finance Review®
Posted on March 10, 2026
2 min readLast updated: March 10, 2026
Quick Summary
South Korea’s FTC fined Mercedes‑Benz 11.2 billion won (~US $7.6 million) for misleading EV buyers by claiming EQE and EQS models used CATL batteries, when about 3,000 were equipped with lesser‑known Farasis cells and this was concealed from dealers and consumers.
South Korea Fines Mercedes-Benz $7.6 Million for Misleading EV Battery Information
Details of the Fine and Investigation
Background of the Case
SEOUL, March 10 (Reuters) - South Korea's antitrust regulator said on Tuesday it has fined Mercedes-Benz 11.2 billion won ($7.61 million) for misleading consumers about the battery suppliers used in some of its electric vehicles.
Sales Guidelines and Battery Suppliers
The Korea Fair Trade Commission (FTC) said Mercedes-Benz distributed sales guidelines to dealers suggesting that all EQE and EQS EVs were equipped with battery cells made by China's Contemporary Amperex Technology Co Ltd (CATL), the world’s largest battery maker.
Some Mercedes EV models, however, were fitted with battery cells supplied by China's Farasis Energy, information that was omitted from the internal sales guide and concealed from dealers and consumers, the FTC said in a statement.
Market Share and Supplier Rankings
CATL held a 39% share of the global EV battery market in 2025, while Farasis Energy did not rank among the world's top 10 battery suppliers, according to industry tracker SNE Research.
FTC Investigation and Findings
The FTC said it launched an investigation after it found battery cells in a Mercedes EV involved in an August 2024 fire at an underground parking lot in Incheon was made by Farasis.
Sales Impact and Penalty Details
About 3,000 vehicles containing Farasis battery cells were sold between June 2023 and August 2024, with total sales amounting to roughly 281 billion won, the FTC said.
The regulator's 11.2 billion won fine, equivalent to about 4% of the related sales, was the maximum penalty allowed under the law for such unfair practices, it said.
Responsibility and Legal Action
An FTC official said Mercedes German headquarters and its Korean unit would jointly pay the fine.
The regulator said it would also refer both Mercedes headquarters in Germany and the Korean unit to prosecutors, saying the two were involved directly or indirectly in creating and distributing the sales guidelines.
Additional Information
($1 = 1,471.6000 won)
(Reporting by Heekyong YangEditing by Ed Davies)
Key Takeaways
- •The Korea Fair Trade Commission imposed the maximum legal penalty (4 % of related sales) after uncovering internal sales guides that omitted Farasis and falsely promoted CATL batteries (evmagz.com)
- •The investigation was triggered by an August 1, 2024 fire in Incheon; the affected EQE EV was equipped with a Farasis battery, prompting scrutiny of Mercedes’ disclosure practices (business-standard.com)
- •CATL remains the global EV battery leader with nearly 39% market share in 2025, while Farasis remains a minor player outside the top tier, underscoring the reputational risk Mercedes sought to leverage (electrive.com)
References
Frequently Asked Questions about South Korea fines Mercedes $7.6 million over misleading EV battery information
1Why was Mercedes-Benz fined in South Korea?
Mercedes-Benz was fined for misleading consumers about the battery suppliers used in its electric vehicles by omitting information about Farasis Energy batteries.
2Which regulatory body imposed the fine on Mercedes-Benz?
The Korea Fair Trade Commission (FTC) imposed the fine on Mercedes-Benz.
3How much was the fine imposed on Mercedes-Benz?
Mercedes-Benz was fined 11.2 billion won, equivalent to $7.61 million.
4What EV battery suppliers were involved in the controversy?
The controversy involved batteries from China's CATL and Farasis Energy.
5How many Mercedes EVs with Farasis batteries were sold?
About 3,000 vehicles containing Farasis battery cells were sold between June 2023 and August 2024.