Taiwan's lithium battery and solar industries are confronting safety challenges that mirror risks seen across international markets, even as the government maintains support for domestic manufacturing of these strategic materials.
A fire at TCC subsidiary Ternary Energy's Kaohsiung facility on January 14 highlighted ongoing combustion risks in ternary battery production. The blaze originated from semi-finished products during initial charging, prompting the company to deploy carbon dioxide suppression, flame-retardant foam, and water cooling systems.
Such incidents aren't isolated to Taiwan. South Korea's dominant battery manufacturers—LG Energy Solutions, SK On, and Samsung SDI—have grappled with spontaneous combustion in energy storage systems, spurring industry-wide safety reforms. These three companies control global ternary battery production.
Government backing remains crucial as the US and Europe support domestic lithium battery manufacturing for strategic applications, including energy storage and electric vehicles. Taiwan's main ternary battery players include TCC and Amita Technologies (ProLogium Technology).
Safety concerns have shaped market dynamics. Chinese manufacturers pivoted toward lithium iron phosphate batteries partly due to ternary battery combustion risks and liability disputes involving EV fires. Foreign automakers remain cautious about Chinese-made ternary batteries, though transactions continue, notably the 2024 Mercedes-Benz EQE 350+ explosion in South Korea using CATL batteries.
TCC emphasized its rapid response protocols and insurance coverage following the recent fire. The company's operations span multiple entities: Ternary Energy handles production, Molicel focuses on R&D with Canadian expansion plans, while energy storage projects, including charging station collaborations with Volkswagen Taiwan, operate independently.
Industry experts stress that both ternary and LFP batteries carry combustion risks. Public attention typically focuses on immediate incidents rather than comprehensive investigations, though factors including system design, materials, location, and environmental conditions influence outcomes.
Similar misconceptions emerged during Typhoon Danas regarding Taiwan's solar sector. Public concerns about "leakage and pollution" incorrectly conflated solar modules with conventional batteries. Solar cells contain no liquids and function like semiconductor chips, using materials comparable to household aluminum fixtures after encapsulation.
Article translated by Vyra Wu and edited by Jack Wu
