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| LG Energy Solution's (LGES) Ochang plant in North Chungcheong Province. Courtesy of LGES |
US carmaker confirms 10 battery-related fires in Bolt EVs
By Kim Bo-eun
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| A GM signboard / Korea Times file |
In an email interview, GM spokesman Dan Flores said the automaker was collaborating with LG to resolve the manufacturing defect. LG Energy Solution (LGES) manufactures batteries for Chevrolet Bolt EVs, while LG Electronics assembles LGES-produced cells into battery modules and packs
"So far, GM experts have confirmed 10 battery related fires in Bolt EVs," Flores said. "GM and LG are working around the clock, seven days a week to resolve this manufacturing defect. We have a long-standing partnership with LG and will continue to work with them to address known issues."
Flores added GM will only begin replacing battery modules when GM and LG were confident of the safety of LG's products. "Both companies are working hard to get to that point as soon as possible," according to the spokesman. The company has currently suspended production of the Bolt.
Last month, GM said it would be recalling all of its Bolt vehicles after the two most recent fires. More than 142,000 vehicles are subject to the recall, which is projected to cost the company $1 billion. A previous plan was to recall 69,000 of the 2017 to 2019 production year vehicles.
GM earlier said a torn anode tab and folded separator in the same battery could be the defect that increased the risk of fire. GM is set to replace battery modules for the recalled vehicles.
LGES, the battery affiliate spun off from LG Chem last year, is Korea's largest EV battery maker and competes with China's CATL for top ranking in the global market.
Following further investigation into the manufacturing processes at LG and disassembling battery packs, GM found manufacturing defects in certain cells produced at LGES manufacturing facilities other than the Ochang plant in Korea. LGES has a battery cell plant in Holland, Michigan. A Bolt fire that occurred in Chandler, Arizona, in July, contained cells from the Michigan plant.
Recall costs are set to weigh on both companies. GM expanded its recall campaign on Bolt EVs mostly because of the potential fire risk from what it described as manufacturing defects, claiming the recall will cost $1 billion. It said it will seek reimbursement from LG. GM reflected earlier recall costs of $800 million in its financial reports for the second quarter.
LG Electronics and LGES also said last month they have set aside a combined 325.6 billion won in provisions for Bolt recall costs. This was before GM stated the recall would be expanded to all vehicles.
GM declined to unveil details of discussions surrounding how much of the recall costs each entity would shoulder.
"We are pursuing commitments from LG on reimbursement for the financial cost of this field action. Those discussions are being handled at the appropriate levels of both companies," the spokesman said.
Besides their traditional supply chain relationship, GM and LG have set up a joint venture, Ultium Cells, which is constructing two plants to manufacture batteries for GM's future EV models.
But GM is set to take the upper hand in management of the 50-50 joint venture to ensure the safety of batteries, given the latest incidents.
"GM will direct the manufacturing quality processes used at the Ultium plants and will be able to bring our more than 100 years of manufacturing experience to the Ultium facilities in Lordstown, Ohio, Spring Hill, Tennessee and the other yet to be announced battery cell manufacturing facilities," Flores noted.
GM has said it will launch 30 new EVs by 2025 using Ultium's battery platform. According to the company, Ultium Cells will use an all-new chemistry, design and manufacturing process.
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