Volkswagen AG has to deal legal challenges following a catastrophic fire onboard incident involving the cargo ship Felicity Ace in 2022.
Felicity Ace, carrying thousands of Volkswagen vehicles, sank near the Azores archipelago due to a fire in May 2022. The ship’s operator, Mitsui OSK Lines Ltd., and insurer Allianz SE have filed lawsuits against Volkswagen, alleging that a faulty battery from an electric vehicle caused the fire and subsequent sinking.
The lawsuits claim that Volkswagen failed to adequately warn about the risks associated with transporting lithium-ion batteries, emphasizing concerns about the safety of electric vehicle components during transportation.
The incident resulted in significant financial losses for Volkswagen, estimated to exceed $155 million, and raised environmental concerns due to the loss of nearly 4,000 vehicles at sea.
Electric Vehicles and fire onboard
To remind, there was also an incident involving the Fremantle Highway car-carrying vessel caught fire off the Dutch coast with thousands of vehicles on-board enroute from Germany to Egypt. On 28 July, it was reported that there were almost 500 electric cars on the ship.
Generally, the shipping industry is facing a significant risk due to the potential fire hazards of lithium batteries in electric vehicles during sea transportation. The main hazards are fire, explosion, and ‘thermal runaway’, a rapid self-heating fire that can cause an explosion. They can also produce irritating, corrosive or poisonous gases that cause an explosion in a confined space.
During the 2023 SAFETY4SEA Limassol Forum, Taslim Imad, Manager Loss Prevention Department at Steamship Mutual, had explained that EVs are typically charged between 30% and 50%. However, a few OEMs (Original Equipment Manufacturers) require that their electric vehicles be fully charged due to a fear of the battery draining on passage with resulting damage to their EVs, which is particularly dangerous.
The lawsuits also highlight the challenges and risks associated with transporting electric vehicles equipped with lithium-ion batteries. The ongoing legal proceedings will likely influence future practices and regulations in the industry, shaping how manufacturers address safety concerns related to electric vehicle components during transportation.