American automaker General Motors expanded its recall of Chevrolet Bolt electric vehicles on Friday due to fire risks from battery manufacturing defects. The automaker said it would seek reimbursement from LG Chem, its battery cell manufacturing partner, for what it expects to be $1 billion worth of losses.
Following the news of the recall, the third one GM has issued for this vehicle, LG Chem shares fell by 11% on Monday, and its stock price lost $6 billion in market value. GM’s shares were down 1.27% at market close.
This isn’t the first time LG Chem’s batteries have resulted in a recall from automakers. Earlier this year, Hyundai recalled