© Reuters. FILE PHOTO: The logo of LG Chem is seen at its office building in Seoul, South Korea, October 16, 2020. REUTERS/Kim Hong-Ji
SEOUL (Reuters) – South Korea’s LG Chem Ltd and LG Electronics Inc said on Tuesday their latest quarterly results accounted for costs of about 1.1 trillion won ($917.66 million) in connection with General Motors Co (NYSE:)’s Bolt EV recall.
LG Chem, whose wholly owned battery unit LG Energy Solution (LGES) supplies batteries to GM, said it had accounted for recall-related costs of about 620 billion won ($517.23 million) in its earnings results for the July-September period.
LG Electronics, which assembles LGES cells into battery modules and packs, said it had accounted for about 480 billion won in similar costs.
In August, GM expanded a recall of its Bolt electric vehicle to more than 140,000 cars to replace LG battery modules due to fire risk, at a cost it estimated at $1.8 billion. The automaker said it would seek reimbursement from LG.