LG to pay up to $1.9 billion to General Motors over Bolt EV battery fires

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  • Problems with the Bolt – the company’s leading mainstream EV – have prompted the automaker to recall all-electric cars since production began in 2016.
  • Repairs to vehicles, including complete replacement of some batteries, are expected to cost $2 billion

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LG Electronics has agreed to reimburse General Motors up to $1.9 billion for the recall of a Chevrolet Bolt EV due to a faulty battery provided by a South Korean supplier.

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Problems with the Bolt – the company’s leading mainstream EV – have prompted the automaker to recall every single electric car since it began production in 2016. Fixing the vehicles, including completely replacing some of the batteries, is expected to cost $2 billion, GM said Tuesday.

Manufacturing problems occurred at LG Battery Solutions’ plants in South Korea and Michigan. The “rare manufacturing defect” in the Bolt EVs is a torn anode tab and folded separator that increases the risk of fire, according to GM, when present in the same battery cell.

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