The feds are now looking at LG.
The Chevrolet Bolt EV looked like it was going to be a promising product that would kick GM's electric strategy into the next gear but due to a disastrous situation relating to the battery pack, the compact eco-friendly car has been a bit of a miss over the last year and a half. You may want to put some of the blame on Chevy for the design oversight, but LG has already taken responsibility for the mishap.
The defective batteries provided by the tech company were capable of spontaneously combusting if they were charged close to their maximum capacity. Mercedes-Benz, Stellantis, and Hyundai also had to recall their EVs produced from 2022 for the very same reason. While some may have believed the smoke to have settled, The National Highway Traffic Safety Administration (NHTSA) has now revealed that it will be launching a review into LG relating to the troublesome part.
According to a conclusive report by Reuters, the NHTSA believes that 138,324 vehicles are included in the review. Moving forward, it will be in discussions with LG, "and other companies that might have purchased the same or similar equipment from LG, notify them of this defect in any vehicles they manufactured, and to ensure thorough safety recalls are conducted where appropriate."
A company spokesperson for LG says it will fully cooperate with the NHTSA's inquiry. Already, it has catered a charge of about $510 million in its third-quarter financial report for GM's Chevy Bolt recall. Over at Stellantis, Chrysler was also subjected to recalling 16,741 units of its Pacifica Hybrid for a similar reason. It claims that 12 of these cars were involved in fire-related incidents but, has not outright stated that this was because of the battery packs supplied by LG.
Despite this situation, car companies are still happy to work with LG on future projects because of the authority it has in the tech industry. Stellantis will be moving forward with the company to construct a $4.1 billion lithium-ion battery production plant for its future EVs set to be produced by the likes of Chrysler, Dodge, Ram, and Jeep.
General Motors is also moving forward with its plan to build batteries with LG despite the Bolt situation. This will be a slightly smaller $2.6 billion project that supplements the auto group's $510 million investment into two production plants for upcoming electric cars.