LORDSTOWN, Ohio (WKBN) – Shares of LG Chem LTD are down on the heels of a recall involving General Motors’ Chevrolet Bolt.
LG Chem makes batteries for the car. A similar recall was issued by Hyundai.
GM issued the recall due to concerns of fire risk from the batteries.
The recall raises questions about lithium ion batteries, which now are used in nearly all electric vehicles.
President Joe Biden wants to convert 50% of the U.S. vehicle fleet from internal combustion to electricity by 2050 as part of a broader effort to fight climate change.
The recall announced Friday adds about 73,000 Bolts from the 2019 through 2022 model years to a previous recall of 69,000 older Bolts.
LG Chem is preparing an initial public offering for battery unit LG Energy Solutions, according to Reuters, but it lost more than $6 billion in market value, their biggest “intraday” trading loss since March 2020.
LG Chem partnered with GM for a $2.3 million Ultium Cells battery plant in Lordstown. The plant will mass-produce Ultium battery cells at the facility to advance the push for a zero-emissions, all-electric future.
LG is the technology leader for lithium ion battery cells.