GM, LG agree on $150 million relief fund for Chevy Bolt EV owners over faulty batteries

(Reuters) – General Motors and South Korean battery firm LG Energy Solution reached a settlement to establish a $150 million fund to provide monetary relief to Chevrolet Bolt EV owners who were affected by defective batteries, documents filed in a U.S. court on Thursday showed.

GM launched the Chevrolet Bolt EV in 2015, using batteries made by LG as part of a strategic partnership between the two companies.

GM started issuing recalls in 2020 after it faced numerous complaints regarding fires in certain vehicles.

Owners of the recalled Bolt EVs who installed the final software remedy at a GM-authorized dealership before Dec. 31, 2023 may receive up to $1,400 in the form of a Visa eReward card, according to documents filed with Michigan eastern district court.

Owners who sold or terminated the lease of their vehicle before the software remedy became available will receive a minimum $700 payment, according to the filing.

LG and GM did not respond to Reuters request seeking additional comments.

Last year, GM ended production of the Bolt EV to make room for new electric vehicles.

In 2021, the company had announced a billion dollar recall campaign to cover thousands of Bolts over battery fire risks. The recall prompted GM to halt Bolt production and sales for more than six months at that time.

(Reporting by Gnaneshwar Rajan in Bengaluru; Editing by Kim Coghill)