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LG Chemical compensates General Motors $1.9 billion for Chevrolet Bolt battery recall

2024-10-18 Update From: AutoBeta autobeta NAV: AutoBeta > News >

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Recently, GM issued a notice in August to expand the recall of Chevrolet Bolt models because of the possibility of a fire caused by a high-voltage battery pack. The second recall includes 2019-2021 BoltEV models and the latest 2022 BoltEV and EUV models, and the full recall of Bolt models is expected to cost GM $1 billion. GM said it would stop selling the model indefinitely and would seek compensation from battery supplier LG. GM announced on its website on Oct. 12 that it had reached an agreement with LG, the parent company of LG Chemical, on the cost of the recall of Bolt EV, and LG agreed to pay GM up to $1.9 billion (12.25 billion yuan). GM estimates that it will cost $2 billion to recall Bolt EV models and repair and replace batteries around the world.

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The second recall comes after GM launched a recall of 68667 2017-2019 Chevrolet Bolt cars in July. These include 50925 electric cars in the US and said defective battery modules would be replaced as needed. The cost of the recall is understood to be $800m. It is worth noting that GM had a recall as early as November last year. At that time, GM hoped to update the software to avoid the risk of fire, but there was another fire in the recalled vehicles after the software update. as a result, GM has to choose a more expensive way to replace battery modules to avoid fire.

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GM said that the power battery of the fire Bolt electric vehicle may have two manufacturing defects: anode tear and diaphragm folding, which will increase the risk of fire when these two problems exist in the same battery unit. It said that after the 10th fire in Chandler, Arizona, the production process of LG chemistry was further investigated and the battery pack was dismantled. It was found that some of the batteries produced at the LG Electronics factory outside the Wukang plant in South Korea had manufacturing defects. By mid-2019, both BoltEV and EUV models were equipped with batteries made by LG Chemical in South Korea. The second recall will replace the vehicle's battery module, while other components such as the battery pack shell and junction box will be retained, and owners who replace the battery module will receive an 8-year / 100000-mile warranty.

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In fact, General Motors is not the only one affected by the LG battery fire. Hyundai Motor said in February that it would replace the LG batteries of about 82000 electric vehicles around the world because of the fire risk. Its recall is mainly aimed at its biggest-selling electric car, the KonaEV ("Kona", corresponding to the domestic Anxino Pure Electric). According to relevant statistics, there were a total of 15 fires in this model, including 11 in South Korea, 2 in Canada, 1 in Finland and 1 in Austria. Hyundai recalled nearly 76000 KonaEV vehicles produced between 2018 and 2020, including about 25000 sold in South Korea. In addition, some Ioniq electric cars and ElecCity buses are also within the scope of recall. With regard to Hyundai's recall, LG did not admit at the time that there was a problem with its battery, saying in a statement: "Hyundai misused the fast charging logic proposed by LG in its battery management system and could not regard the battery as the direct cause of the fire hazard." GM's subsequent investigation into the LG battery and LG Chemistry will pay GM up to $1.9 billion in fire compensation, pointing directly to the defect of the LG battery.

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It is not difficult to see that both car companies have launched large-scale recalls because of vehicle battery problems, and the recall has caused great losses to both the car companies and LG, because whether a large number of recalled electric vehicles produce new batteries or replace them, it will be an arduous project for GM and LG Chemistry.

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