The situation for Bolt EV owners became so bad that the US authorities even ordered owners to park the vehicle outside to avoid potential fires.
Over the last couple of months, GM has lost face with the numerous battery fires and recalls of the Bolt EV, as it plans its mega transmit on towards becoming an electric car company. But the reason behind the fires was LG’s battery technology was to blame. Now, GM has reached a deal with its critical supplier to nearly pay for all the costs associated with the recalls which are estimated to be in the region of $2 billion. LG has reportedly agreed to pay $1.9 billion in expenses and GM will recognize that financial recovery in its Q3 2021 earnings report.
GM said that the recall was perpetuated because of manufacturing defects in LG’s batteries. LG spotted anode and cathode-anode separator issues that combined could potentially increase the chance of battery fires. LG since then has addressed the issue and restarted production of its batteries. LG’s batteries were also behind the recalls Hyundai had to trigger.
The cost of the recall in the scheme of things is nominal but the overall impact of the issue has been a blot on both their reputations. The situation for Bolt EV owners became so bad that the US authorities even ordered owners to park the vehicle outside to avoid potential fires. GM is on the cusp of launching the GM Hummer EV which will also be using its new Ultium battery platform which has been architected by LG and this could potentially be an avenue for reform.
In fact, GM has motored along and announced that it wants to have numerous electric models by 2025. It is accelerating the shift towards EVs as it aims on becoming the premiere that EV manufacturer in the US beating even Tesla. GM’s Chevrolet was also testing a new version of the Bolt last year, but this situation to accelerate the demise of the iconic EV.