Recently, GAC Aion's AION S series vehicles have experienced issues such as swollen batteries, electrolyte leakage, and cell ruptures, rendering the vehicles inoperable. Within just half a month, 182 related complaints were filed, affecting approximately 210,000 vehicles, with a fault detection rate of 4.7%. All problematic batteries were supplied by CALB (China Aviation Lithium Battery Co., Ltd.) and are of the 177Ah lithium iron phosphate type. GAC Aion and CALB have issued a joint statement confirming that certain AION S models equipped with this specific battery model are affected and have announced remedial measures: GAC Aion will extend the battery warranty period for affected vehicles from 8 years/150,000 km to 8 years/300,000 km, offer free inspections and replacements, and provide compensation to owners whose repairs exceed five days. CALB has pledged to deliver free maintenance and repair services to vehicle owners using its batteries. This incident involves an electrochemical safety issue with significant scope. Although neither party has initiated a formal recall—opting instead for extended warranties and free repairs—the potential costs could surpass the RMB 2.314 billion incurred in Zeekr’s earlier recall. CALB forecasts full-year 2025 net profit of RMB 2.095 billion, while GAC Group anticipates a first-half 2024 loss of RMB 4–4.5 billion, placing both companies under considerable financial strain. Further developments in the handling of this issue remain to be seen.