By Kwanwoo Jun

Hyundai Motor Co. is replacing the battery cells of more than 81,000 of its electric vehicles world-wide under a new recall over fire risks that could cost the car maker around $900 million.

Kona, Ioniq, Elec City car models manufactured from 2017 to 2020 are subject to the broadened recall, according to both the company and South Korea's Ministry of Land, Infrastructure and Transport.

Hyundai Motor said a total of 81,701 electric vehicles globally--including 26,699 in South Korea and 55,002 elsewhere-- will have their battery cells replaced.

The South Korean auto maker estimates that the battery replacements will cost about 1 trillion won ($900.7 million).

The latest move follows a recall in October last year that saw more than 70,000 Kona vehicles globally taken in to receive software updates to address the possibly fire-prone battery cells. But some of the recalled cars caught fire even after the upgrade.

The South Korean ministry said an initial probe showed that faulty high-voltage battery cells could pose a fire risk.

LG Energy Solution, which supplies EV batteries to Hyundai Motor, said it still can't confirm that the battery cells are to blame for the fires. The South Korean company said it will cooperate with the fresh recall for the safety of motorists.

Hyundai Motor shares closed 3.9% lower after the new recall decision.

Write to Kwanwoo Jun at kwanwoo.jun@wsj.com

(END) Dow Jones Newswires

02-24-21 0340ET