LG Energy Solution: "US Authorities' Battery Investigation Is a 'Routine Procedure'... Matter Resolved with GM and Others"

US Authorities Investigate 138,324 Electric Vehicles with LG Energy Solution Batteries
Recall Impact on 5 Companies Including GM, Mercedes-Benz, Hyundai, Stellantis, Volkswagen

LG: "Official US Procedures for GM, Hyundai Recalls Completed with Customer Agreement"
"Volkswagen Issue Due to Simple Soldering Defect... Circuit Board Supplier Process Improvement"

LG Energy Solution Michigan Plant, USA. (Photo by LG Energy Solution)

[Asia Economy Reporter Moon Chaeseok] LG Energy Solution responded on the 6th to news that the U.S. automotive regulatory authorities have launched an investigation into vehicles from five automakers including General Motors (GM), stating, "This is a routine procedure related to recalls, and the recall process with U.S. authorities and agreements with GM and other automakers have already been completed."

According to major foreign media, the U.S. National Highway Traffic Safety Administration (NHTSA) began an investigation on the 5th (local time) into 138,324 electric vehicles equipped with batteries made by LG Energy Solution. The investigation includes electric vehicles from LG Energy Solution's major global automaker clients such as GM, Mercedes-Benz, Hyundai Motor Company, Stellantis, and Volkswagen. The investigation reportedly started after these five companies successively recalled vehicles since 2020, citing fire risks due to defects in LG batteries.

According to NHTSA, Mercedes-Benz recalled the 2019 model 'Smart Fortwo' electric vehicle in February 2020 due to a high fire risk caused by internal defects in LG battery cells. Hyundai Motor Company also recalled the 2019 and 2020 model Kona electric vehicles eight months later for similar reasons, and last year conducted a second recall of Kona and Ioniq electric vehicles due to fire risks from battery electrical short circuits. GM recalled 140,000 Chevrolet Bolt electric vehicles in November 2020 due to manufacturing defects in LG batteries. GM announced in October last year that it had been reimbursed by LG for recall costs, and LG disclosed that the recall cost share amounted to 1.4 trillion KRW. Stellantis received dozens of vehicle fire reports in February and recalled 2017-2018 model Pacifica hybrid minivans equipped with LG batteries. Volkswagen recalled the 2021 model ID4 electric vehicle last month.

LG Energy Solution issued a statement on the same day saying, "When automakers conduct recalls, NHTSA follows a general procedure to verify whether the parts supplier provides the same or similar parts to other automakers as a follow-up measure, and this investigation is part of that process," adding, "We plan to cooperate sincerely with this follow-up investigation."

According to LG Energy Solution, the official NHTSA procedures for major previous recalls involving GM Bolt, Hyundai Kona, and Ioniq have already been completed. Agreements with vehicle customers have also been finalized. Regarding this, LG Energy Solution stated, "No additional issues are expected." The cause of recalls involving 17,000 Fiat Chrysler Automobiles (FCA) Pacifica plug-in hybrid electric vehicles (PHEV) is currently under investigation. The recall of 351 Volkswagen ID4 vehicles was due to simple soldering defects on the flexible circuit boards attached to battery modules, and the circuit board supplier's process has already been improved. In the case of Mercedes-Benz, the recall was due to welding defects, and only one vehicle was affected.

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