U.S. reviews LG Energy Solution batteries to ensure adequate recalls (updated)

LG

05/04/2022 16:22

(Adds details, LG statement)
    By David Shepardson and Heekyong Yang
    WASHINGTON/SEOUL, April 5 (Reuters) - The U.S. National
Highway Traffic Safety Administration (NHTSA) on Tuesday said it
is opening a review to ensure all defective batteries produced
by LG Energy Solution  373220.KS  have been recalled by
automakers.
    The auto safety agency noted Mercedes-Benz  MBGn.DE ,
Chrysler-parent Stellantis  STLA.MI , General Motors  GM.N  and
Hyundai Motor  005380.KS  have issued recalls since 2020 due to
internal failures in high-voltage vehicle batteries that pose
fire risks.
    NHTSA said the equipment query covers 138,324 vehicles and
will communicate with LG "and other companies that might have
purchased the same or similar equipment from LG, notify them of
this defect in any vehicles they manufactured, and to ensure
thorough safety recalls are conducted where appropriate."
    An LG Energy Solution spokesperson in a statement said the
company understands the request by NHTSA is a follow-up
procedure, adding, "LG Energy Solution will fully cooperate with
the inquiry." 
    Among recalls cited by the agency were GM's recalls of its
Chevrolet Bolt EV that prompted it to halt sales and production
of new models in August.
    In October, LG Chem Ltd  051910.KS , which owns LG Energy
Solution, said it would take a charge of 620 billion won ($510
million) in its third-quarter results in connection with the GM
Bolt recall.
    NHTSA noted in February that Stellantis recalled 16,741
2017-2018 Pacifica Plug-In Hybrid Electric vehicles after the
automaker said hybrid battery packs produced by LG were involved
in 12 reports of vehicle fires.
    The automaker said it "has not yet determined whether the
battery packs were defective or the root cause of the fires."
    NHTSA also cited a March 16 Volkswagen  VOWG_p.DE  recall of
351 ID4 vehicles from the 2021 model year over batteries that
may contain insufficient soldering points and potentially
unreliable connections inside the high voltage battery. VW said
vehicles may break down while driving, potentially leading to a
crash.

 (Reporting by David Shepardson
Editing by Bill Berkrot)
 ((David.Shepardson@thomsonreuters.com; 2028988324;))