LG Energy Solution and GM to Compensate Bolt EV Owners 200 Billion KRW for Battery Defects

Domestic battery company LG Energy Solution (hereinafter LGES) and American automobile company General Motors (hereinafter GM) have decided to establish a fund of $150 million (approximately 200 billion KRW) to compensate owners of the Chevrolet Bolt EV model who suffered damages due to battery defects.

Chevrolet Bolt EV model

On the 17th (local time), major foreign media outlets reported, citing documents submitted to the U.S. Eastern District Court of Michigan, that the two companies have agreed to provide such compensation in response to damage claims filed by Bolt EV owners.

Previously, after GM introduced the electric vehicle Chevrolet Bolt EV using batteries made by LGES in 2015, consumer complaints about fires occurring in certain vehicle models continued, leading GM to initiate a recall in 2020.

Under this compensation agreement, Bolt EV owners who received the final software update recall at GM authorized dealerships before the end of last year are expected to receive up to $1,400 in compensation. Owners who sold their vehicles or terminated lease contracts before the software update will also receive a minimum compensation of $700.

In 2021, GM launched a $1 billion campaign to recall thousands of vehicles at risk of battery fires. At that time, GM suspended production and sales of the Bolt for more than six months. Production of the Bolt EV was discontinued last year to make way for the launch of GM’s new electric vehicle models.

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