Dozens of vehicles at EV plant erupt in flames
Electric vehicles (EVs) at the Rivian Automotive manufacturing facility in Normal, Illinois erupted into flames Saturday.
Investigators are still trying to determine the cause of the blaze, which reports say affected dozens of cars. Because the fire was contained in the parking lot, nobody was injured and there was no damage to the factory itself.
Triggered by EV batteries?
While the source of the outbreak has not yet been confirmed, it is believed to have been caused by the lithium-ion batteries that power EVs. These batteries have a penchant for combusting spontaneously due to a process called thermal runaway in which overuse, overcharging, damage, or extreme weather causes an increase in temperature that results in an explosion.
Once ignited, EV fires are difficult to extinguish via traditional methods. Reports estimate that 13% of EVs reignite after the initial blaze.
Reports of exploding EV batteries are growing, leading authorities to recommend extra safety measures for EVs. UK government guidelines, for example, require repair shops to “quarantine” EVs that sustain even minor battery damage by separating them from other cars by at least 15 meters. Government officials have proposed requiring wider car spaces for EVs in parking lots due to their risk of combustion, as well as installing thermal monitoring cameras to detect when an EV goes into thermal runaway.
It is unclear if Rivian Automotive took such precautions.
EV battery woes are affecting insurance premiums
These explosions and the high repair costs for EV batteries are causing insurance companies to take a closer look at their policies for EVs, resulting in higher premiums.
EV battery repair costs are approximately 25% higher than their gas-powered counterparts after rising 33% in the first quarter of 2023. This, in turn, has led to a 72% jump in average EV insurance costs compared with 29% for gas vehicles. Some EV owners are receiving insurance quotes of over $120 per week, while others are receiving quotes double or even triple the year before.
Other car insurers have stopped insuring EVs altogether. John Lewis Financial Services stopped offering insurance for EVs last month, and Aviva only recently restored insurance products for the Tesla Model Y after canceling them earlier this year.
“The battery is an extremely expensive component of an electric vehicle and until we find efficient ways of dealing with it we have the challenge of high premiums for electric vehicles, which nobody wants,” said Thatcham Research CEO Jonathan Hewett.
