Health and Safety

Emergency Response / Direct Mitigation Measure

A fire at Molie Quantum Energy Corporation (Xiaogang plant) on July 14, 05:04, began in a non-operational area; firefighters arrived 05:21. The Li-ion fire reignited overnight, extinguished 08:00 next day; environment conditions normal. 15 minor injuries, most were minor; 2 hospitalized released in 4 days. MoE's 3-day monitoring traced hydrofluoric acid detected at the fire scene on July 14 09:47, believed to be from residual electrolyte, did not spread to surrounding areas. A July 16 Kaohsiung Gov't release confirmed no toxic gas; EPA's 3x-daily tests thru July 24 were normal. Immediate evacuation response flaws (e.g., flash explosions, assembly point) will be fixed. Fire did not affect UHPC storage cabinets (tested <100°C surface after 2hr at 1000°C, a safety level far superior to standard metal cabinets), now powered down. TCC Chairman formed a task force for strict accountability under company rules. Post-investigation, plant restructure and management review are priorities.

• Processes/mechanisms were strengthened: The Xiaogang plant cooperates with fire/police investigations; however, controlled site access prevents retrieving the core-zone mainframe, delaying assessment of links to operational processes. Suppliers are analyzing sensor and multi-stage suppression system malfunctions. Planned enhancements include: improving machine suppression via AI-assisted early intervention and more testing; fortifying the non-conforming product process with error-proofing and integrity safeguards; and using fire/explosion-proof structures in reconstruction while evaluating remote/robotic firefighting to reduce human risk. Concurrently, at sister facility E One Moli Corporation (Tainan plant), Li-ion production fire safety is being optimized; its EHS department has increased inspections, inventoried high-risk equipment, and advanced emergency drills for completion by August 31. To build public trust, third-party experts are engaged to review the full optimization process at both Xiaogang and Tainan plants.
• Policies were strengthened: The Xiaogang plant will optimize emergency response procedures by relocating assembly points to increase the safety distance from the facility, thereby enhancing personnel evacuation safety. Operational protocols will be further strengthened in accordance with the existing ISO 45001 certification. This includes adding hardware infrastructure within various process areas to serve as effective firebreaks and prevent disaster escalation. Furthermore, the Environmental, Health, and Safety (EHS) policy will be revised to include new requirements such as "Hazardous Chemical Labeling" to ensure informational transparency and alleviate concerns within the surrounding community.
• Training was provided: Xiaogang plant will continuously review and enhance the battery plant's safety standards and emergency response mechanisms. Internal firefighting capabilities will be improved by establishing an in-house team, providing professional training to current staff, and hiring firefighting professionals to strengthen the response to new types of fire incidents. A firefighting fund will also be established to assist neighboring fire departments acquire modern equipment, while enhanced cooperation will focus on jointly developing and drilling Standard Operating Procedures for lithium-ion battery fire response. Concurrently, the Tainan plant has scheduled internal emergency drills for 2025Q3 covering gas leak and electrical fire scenarios. Its Emergency Response Team will complete additional skills training before September to ensure rapid disaster control and the effective prevention of casualties.
• The business unit/activity facing the issue was discontinued or reduced: In compliance with government regulations, Molie Quantum Energy Corporation (Xiaogang plant) will suspend operations for three months to facilitate the official investigation into the cause of the fire and subsequent damage assessment.

Environmentally, fire water, settled in on-site grit chambers, was trucked to Linhai Industrial Park for disposal. All water passed pH/temp tests & met MoE discharge standards, causing no irreversible harm. Monthly public air monitoring (CO, HF, PM, TVOCs) will run for 4 months; all data is compliant. EAP effectiveness will be gauged by participation & feedback. Safety training/drills face rolling reviews; surveys will assess compensation. Parent TCC's CSDDD (human rights/environment) will extend to local residents. A local hiring target will be set with chief's input, using the 18.6% local hire rate as a baseline. A dedicated team is surveying local opinion via visits/calls. Regarding business partners, close communication is maintained with supportive customers and suppliers. Supply chain partners understand the recovery timeline and are cooperating to ensure the stable supply of key materials and components. While basic customer needs will be met, maximum volume is not possible.

• Press Release: Molie Quantum Energy Proactively Submits Internal Investigation Report, Invites Fire Experts to Assist, Fully Committed to Restoring Community Trust
• Molie Quantum Energy Xiaogang Plant Fire Incident Progress Report (July 14 - July 27)