Fire insurance firm exercises the right to indemnity to LG Chem for 'ESS Fire'
Fire insurance firm exercises the right to indemnity to LG Chem for 'ESS Fire'
  • Lee Jun-sung
  • 승인 2019.07.18 09:24
  • 댓글 0
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ESS accident investigation committee says, 'It detects faults in some battery cells'

Samsung Fire & Marine Insurance has filed a suit against LG Chem's battery, suspecting it as the cause of the ESS (Energy Storage System) fire.

According to related industry sources on July 18, Samsung Fire recently filed a lawsuit against LG Chem for the right to indemnity after LG Chem's battery-ridden ESS fire forced it to pay insurance money to the installation company.

If a fire breaks out, the insurer will pay compensation to the policyholder and then identify the cause of the fire and claim the right to indemnity to the cause provider. If the trial begins, Samsung Fire and LG Chem will start to prove the cause of the fire, respectively.

"We are still in the early stage of the lawsuit," said an LG Chem official, adding that the results will be revealed once the suit is carried out.

Meanwhile, the "Money Today" reported in its latest issue that some battery cells made by LG Chem have been identified with manufacturing defects that could cause ESS fires, which is expected to cause controversy over the responsibility.

"We confirmed that many of the accidents used batteries produced at the same plant at the same time," an official of the public-private ESS fire investigation committee said in an interview. "After analyzing the dismantling, we found manufacturing defects such as polar folds, poor cutting, and poor coding of chemicals at some of LG Chem's battery cells."

"The battery cell (manufacturing defect) does not cause internal short circuits that cause the fire independently," the official said. "We believe that it can be an indirect factor in the fire by combining various operating conditions."

LG Chem's battery cell, which has been confirmed to have manufacturing defects, is an early product in 2017. Of the 23 ESS fire accidents since August 2017, 12 businesses with LG Chem battery cells were found to have been used, eight for Samsung SDI and three for other products.

In response, LG Chem said, "Although there have been some defects, we have finished the improvement measures by improving the design and inspection process. We checked all businesses that used LG Chem's battery cells and selected and replaced potential bad ones." 

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