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GM Battery Maker to Pay $1.9B Over Recall

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Oct. 13, 2021—General Motors on Tuesday said it has reached an agreement with LG Electronics, its EV battery supplier, to cover the costs of the major recall of all Chevrolet Bolt units.

A report from the Detroit Free Press says LG will reimburse GM for $1.9 billion after an issue with the Bolt's batteries was linked to several vehicle fires, which prompted the recall of 140,000 Bolt units.

“LG is a valued and respected supplier to GM, and we are pleased to reach this agreement,” said Shilpan Amin, vice president of GM Global Purchasing and Supply Chain, in a statement. “Our engineering and manufacturing teams continue to collaborate to accelerate production of new battery modules and we expect to begin repairing customer vehicles this month.”

GM said it will see a recovery in its third-quarter earnings as a result of the deal according to the report.

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