The Strategist

LG Chem shares plummet 4% after second recall of EVs with LG batteries

11/17/2020 - 03:51

Shares of the world's largest manufacturer of batteries for electric cars, Korean company LG Chem, fell by 4% in price during today's trading. Electric cars with its batteries have received a major recall twice in the last two months.

JCT 600
JCT 600
The day before, General Motors announced the recall of 68,700 Chevrolet Bolt cars due to several battery fire cases. 

According to The Detroit News, there have already been five such cases with GM electric vehicles produced between 2017 and 2019. All of them were equipped with batteries from LG Chem. Two people were injured in the incidents, who were poisoned with combustion products.

Last month, another LG Chem customer, Hyundai, announced a major car recall. The Korean car concern was forced to recall 77,000 electric Kona Electric vehicles.

The US National Highway Traffic Safety Administration is already investigating battery fires in Chevrolet Bolt cars. Both GM and LG Chem have said they are cooperating with the regulator.

In October, Tesla announced the recall of 50,000 electric S and X models due to suspension problems.