LG to pay up to $1.9 billion to GM over Bolt EV battery fires
KEY POINTS
LG Electronics has agreed to reimburse General Motors up to $1.9 billion to recall Chevrolet Bolt EVs due to fire risks caused by faulty batteries provided by the South Korean supplier.
Problems with the Bolt – the company’s flagship mainstream EV – have led the automaker to recall every one of the electric cars since production began in 2016.
Fixing the vehicles, including completely replacing some batteries entirely, is expected to cost $2 billion
LG Electronics
has agreed to reimburse General Motors up to $1.9 billion to recall and fix
Chevrolet Bolt electric vehicles due to fire risks caused by faulty batteries provided by the South Korean supplier.
GM said Tuesday.
That’s up from a previous estimate of $1.8 billion.
As a result of the agreement,
GM will recognize an estimated recovery in the third-quarter that will offset $1.9 billion of $2.0 billion in charges associated with the recalls.
The automaker previously said it was pursuing reimbursement from LG.
LG did not immediately respond for comment.
The manufacturing problems
occurred at LG Battery Solution’s plants in South Korea and Michigan.The “rare manufacturing defects” in the Bolt EVs
are a torn anode tab and folded separator that when present in the same battery cell increase the risk of fire, according to GM.