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LG to Pay GM $1.9 Billion for Chevy Bolt EV Battery Recall

Chevy Bolt Recall Lawsuit »
LG to Pay GM $1.9 Billion for Chevy Bolt EV Battery Recall

LG, the company which manufactured the batteries involved in GM’s recall of all Chevy Bolt EV and EUV models, will pay the automaker $1.9 billion to cover almost the entire cost of the recall. The agreement between the two companies was announced on the morning of October 12th, 2021.

While the recall issue persists and plans for a long-term fix remain up in the air, the companies have plans moving forward to establish plants in the U.S. dedicated to EV battery production.

Plans for a software update and replacement batteries and modules for certain Chevy Bolt EV and EUV models in October were announced, but Chevy has yet to update its recall information page since September 20th. Along with battery replacements in models most likely to be affected by the battery malfunction, the company will distribute a new diagnostic software “designed to detect specific abnormalities that might indicate a damaged battery in Bolt EVs and EUVs by monitoring the battery performance and alerting customers of any anomalies.”

Some Chevy Bolts have been bought back by the manufacturer after serious buyer pushback, but most owners with affected models will likely receive additional vehicle-specific information from GM directly.

Battery production for the Bolt EV and EUV was originally halted after the recall, but resumed at LG battery plants in Holland and Hazel Park, Michigan in late September. The recall for all Chevy Bolt EVs and EUVs was for a torn anode tab and folded separator in the battery, causing a short and resulting in a fire in rare instances.

Bartlett, Jeff S. “GM Announces Fix for Chevrolet Bolt EVS to Address Fire Risk.” Consumer Reports, 12 Oct. 2021, https://www.consumerreports.org/car-recalls-defects/chevrolet-bolt-recalled-again-due-to-fire-concerns-a3566085147/.

Beckman, Brittany Levine. “Chevy Bolt Recall: Can You Get Your Car Repurchased?” Mashable, Helios.web, 21 Aug. 2021, https://mashable.com/article/chevrolet-bolt-recall-buyback-msrp-swap.

“Chevrolet Bolt EV Battery Production Resumes.” Media.gm.com, General Motors, 20 Sept. 2021, https://media.gm.com/media/us/en/gm/news.detail.html/content/Pages/news/us/en/2021/sep/0920-bolt.html.

“Chevy Bolt EV & EUV Recall: Chevrolet.” Chevrolet, General Motors, 20 Sept. 2021, https://www.chevrolet.com/electric/bolt-recall.

Halvorson, Bengt. “Chevy Bolt EV Battery Recall: Replacements Could Start in October, New Diagnostic Software Soon.” Green Car Reports, 21 Sept. 2021, https://www.greencarreports.com/news/1133633_chevy-bolt-ev-battery-recall-replacements-could-start-in-october-new-diagnostic-software-soon.

Halvorson, Bengt. “GM Planning Second US Battery Plant with LG in Tennessee.” Green Car Reports, 16 Apr. 2021, https://www.greencarreports.com/news/1131930_report-gm-planning-second-us-plant-with-lg-in-tennessee.

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Litigation Updates

LG to Pay GM $1.9 Billion for Chevy Bolt EV Battery Recall

October 21, 2021
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October 21, 2021

LG to Pay GM $1.9 Billion for Chevy Bolt EV Battery Recall

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