S.Korea’s LG Chem shares dive nearly 10% on GM electric vehicle
© Reuters. FILE PHOTO: The logo of LG Chem is seen at its office building in Seoul, South Korea, October 16, 2020. REUTERS/Kim Hong-Ji/File Photo//File Photo
SEOUL (Reuters) -Shares of South Korea’s LG Chem Ltd slid as much as 9.5% on Monday after General Motors Co (NYSE:) on Friday said it would recall about 73,000 Chevrolet Bolt electric vehicles (EVs) at a cost of $1 billion to address fire risks.
The Detroit company also said it would indefinitely halt sales of the EVs due to the issue and will seek reimbursement from battery supplier LG. The latest recall covers vehicles from model years 2019 through 2022.
Shares of LG Electronics Inc, which assembles cells manufactured by LG Chem’s wholly-owned battery subsidiary LG Energy Solution (LGES) into battery modules, dropped as much as 5.8% in morning trade.
The broader market was trading up 0.2% as of 0033 GMT.
Earlier this month, LG Electronics cut its second-quarter operating profit by more than a fifth to reflect costs for the GM recalls.
South Korean automaker Hyundai Motor Co earlier this year said it would spend $900 million to replace LG batteries in some 82,000 EVs due to fire risks
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