March 19, 2026: Antitrust chiefs in South Korea have fined Mercedes-Benz 11.2 billion Korean won ($7.6 million) for allegedly misrepresenting information about batteries used in some vehicles.

The Korea Fair Trade Commission said on March 10 the auto giant had advertised its EQE and EQS models as using premium cells from China-based battery giant CATL — when in fact some vehicles involved were equipped with batteries from China-headquartered Farasis ⁠Energy.

However, Mercedes-Benz Korea said it firmly disagreed with the Commission’s findings and would take “necessary legal measures” to challenge the decision.

The Commission said it decided to launch an investigation after it discovered battery cells in a Mercedes EV involved in an August 2024 fire at an underground parking lot in Incheon were made by Farasis.

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, according to the Commission.

Four out of six EQE models and one out of seven EQS models released at the time were equipped with Farasis cells. This was not disclosed in dealer guides and marketing material, the Commission said.

CATL is the world’s leading battery cell manufacturer, holding an overwhelming advantage over Farasis in terms of market share, brand recognition, and technological capabilities, the Commission said.

“Furthermore, Farasis has a history of a large-scale recall in China in March 2021 due to battery fire risks, just prior to the domestic launch of the Mercedes-Benz EQ electric vehicle in 2022, and in the domestic market, Farasis battery cells were installed only in the Mercedes-Benz vehicles involved in this incident.”

The Commission accused Mercedes-Benz Korea and the firm’s headquarters in Germany of concealing information and deceiving consumers.

Mercedes-Benz was also ordered to publicize the fine to the media, to alert affected car owners that they may need to take legal action over the issue.

In addition, the Commission said it would refer the auto firm’s HQ in Germany and its Korean arm to prosecutors in Korea.