Which supplier is GM seeking reimbursement from for battery fire issues?

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GM is Seeking Reimbursement from LG for Battery Fire Issues in Chevrolet Bolt EVs

General Motors (GM) has stated it will seek reimbursement from its battery supplier, LG, for costs associated with an expanded recall of Chevrolet Bolt electric vehicles. This recall is due to the risk of fires originating from the high-voltage battery pack, impacting approximately 73,000 vehicles from the 2019 through 2022 model years. The total cost of this latest recall is estimated to be US$1 billion, adding to previous expenses incurred from earlier Bolt recalls.
LG's Role in the Recall and Costs

LG, through its subsidiaries LG Electronics and LG Energy Solution (LGES), is involved in the ongoing joint investigation into the root cause of the battery defects. LG Electronics previously adjusted its second-quarter operating profit to account for costs related to GM's recalls. The defects identified in the battery cells, produced at LG manufacturing facilities, include a torn anode tab and a folded separator within the same cell, increasing the risk of fire.
Previous Incidents and Financial Impact

This situation mirrors previous issues with LG-supplied batteries; Hyundai Motor Co. previously incurred US$900 million to replace LG batteries in around 82,000 electric vehicles due to similar fire risks. For GM, the US$1 billion cost for the current recall is in addition to an estimated US$800 million from prior Bolt recalls. The expanded recall now includes 9,335 Bolt EVs from the 2019 model year and 63,683 Chevrolet Bolt EVs and EUVs from the 2020-2022 model years.
GM's Actions and Consumer Warnings

GM has announced an indefinite halt to Chevrolet Bolt EV sales until the issue is resolved and will replace the defective battery modules with new ones. The automaker has reiterated warnings for owners of recalled vehicles to park them outside after charging and not to leave them charging indoors overnight, a recommendation also highlighted in a new consumer warning issued by the National Highway Traffic Safety Administration (NHTSA), which continues its investigation into the matter.

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Which supplier is GM seeking reimbursement from for battery fire issues?

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