Growing Pains of Batteries

GM Bolt Additional Recall Concerns
Leading Companies Like LG Energy Solution on Alert
Thorough Cause Investigation Needed
Focus on Next-Generation Technology Development

GM Chevrolet electric vehicle Bolt charging

[Asia Economy Reporter Choi Dae-yeol] As General Motors (GM) in the United States has decided to issue an additional recall for its flagship electric vehicle model, the Chevrolet Bolt, domestic battery companies leading the global battery market, including LG Energy Solution, are becoming tense. With the global battery market rapidly expanding centered on electric vehicles, competition among companies and countries has intensified, raising concerns that the leadership in the battery market could be lost. Domestic battery companies plan to focus on thorough cause investigation and next-generation technology development, viewing this as growing pains that must be endured due to market expansion.

According to industry sources on the 23rd, with GM deciding to recall an additional 73,000 Bolt EVs this time, the total global recall volume has exceeded 140,000 units. Earlier, at the end of last month, GM had decided on a recall and responded by updating software, but after further vehicle fires occurred, an additional recall was necessary.

The problem is that the battery module replacements due to this recall are estimated to exceed 2 trillion won, and battery supply is expected to be challenging. LG has been supplying batteries to automakers through domestic and overseas factories, but the order volume from electric vehicle companies has significantly increased in recent years.

In the case of Hyundai Motor's Kona EV, which decided to replace batteries following a series of fires, only about one-third of the replacements were completed over nearly half a year. LG Energy Solution stated immediately after GM's announcement that "we are actively cooperating to ensure the recall proceeds smoothly" and has begun investigating the cause of the recall.

Amid ongoing internal and external adversities, aggressive moves from global Chinese and Japanese battery companies have also intensified. CATL of China, fiercely competing with LG for global leadership, announced plans to replace materials (lithium → sodium) that can significantly reduce production costs, while also undertaking a massive external expansion through a 10 trillion won capital increase. Panasonic, which has solidified its position by supplying Tesla, has established a joint venture with Toyota, a global leader in vehicle sales, aiming to reduce battery costs to about half. In the US and Europe, regions traditionally strong in material businesses, the battery industry is viewed as directly linked to energy security, leading to a focus on technology development.

This content was produced with the assistance of AI translation services.