Over the last six months, a handful of the world’s top electric-vehicle (EV) manufacturers have issued some of the most costly recalls in auto industry history. Investors are concerned about the billions of dollars that would be required and who will foot the tab.
Instead, they should inquire about LG Energy Solutions, the battery company at the core of it all.
General Motors Co. recalled its Bolt EVs for the third time in nine months this month, adding 73,000 newer vehicles to the total. The latest recall — will cost around $1 billion, for a total of $1.8 billion — includes every Bolt electric car.
This comes on the heels of a $900 million recall of 82,000 EVs by Hyundai Motor Co. earlier this year.
In both incidents, defective LG Energy Solutions batteries were used. As per GM website the problem consists of two LG manufacturing defects (a torn anode tab and folded separator) that, in rare circumstances, when present simultaneously in a single battery cell can lead to fire.
Too few analysts and investors are asking fundamental questions about battery technology, production quality, and the logic behind partner selection. Even after these costly recalls. In actuality, though, it’s worth asking how “secure” these electric vehicles truly are, because they might endanger people’s lives.
Reference- BBC, The Print, The Hindu, Forbes, Inside EVs, GM website