LG Energy Solution "Will Decide on IPO Postponement by October"

Reflecting in Q3 Results... Recall Provision Amount Undecided

[Asia Economy Reporter Hwang Yoon-joo] LG Energy Solution, which is discussing a battery recall for GM and Chevrolet Bolt EV (electric vehicle), will decide by October whether to continue its initial public offering (IPO) process aimed at completing the listing within this year.

On the 30th, LG Energy Solution stated, "Regarding the IPO, we will comprehensively and thoroughly review GM's recall measures, market conditions, and other factors, and decide by October whether to continue pursuing the IPO with the goal of completing the listing within the year, and communicate with the market accordingly."

LG Energy Solution explained, "The company, LG Electronics, and GM are jointly conducting a root cause investigation related to the recall," adding, "We are actively cooperating to promptly derive the final recall measures based on this." They emphasized, "The three companies are conducting detailed analyses and various tests on the recalled products, and are also developing additional software systems that can quickly identify product abnormalities and enhance safety, which will be applied soon."

LG Energy Solution plans to reflect the recall-related provisions in the third quarter. However, they refrained from commenting on "whether and to what extent additional provisions will be recognized in the third quarter, as this will be determined later depending on the progress of the joint investigation by the three companies." LG Energy Solution also added, "GM is an important customer with whom we have maintained a strategic partnership for over 10 years, and both sides will wisely resolve this recall based on the trust built over a long period and continue a solid cooperative relationship."

Meanwhile, on the 20th (local time), GM announced it would recall an additional 73,000 Chevrolet Bolt electric vehicles equipped with LG Energy Solution batteries. The recall targets are 2019 to 2022 models. This announcement came about a month after GM declared a recall of 69,000 Chevrolet Bolt EVs (2017 to 2019 models) sold in the U.S. and worldwide. The total estimated recall cost is $1.8 billion (approximately 2.1 trillion KRW).

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