General Motors and South Korea's LG Energy Solution have agreed to create a $150 million fund aimed at providing compensation to owners of Chevrolet Bolt EVs impacted by battery defects. This decision is a resolution to a class action lawsuit sparked by numerous fire incidents linked to the vehicles' batteries.
The settlement was detailed in documents filed in a U.S. court May 16.
GM launched the Chevrolet Bolt EV in 2015, using batteries produced by LG. However, the partnership faced challenges starting in 2020 when GM initiated recalls of the vehicle due to escalating complaints concerning battery fires.
"GM, LG Energy Solution and LG Electronics have agreed to a settlement with plaintiffs to resolve class action litigation related to the Bolt EV battery recall," GM said in a statement to Reuters.
Under the terms of the agreement, Bolt EV owners who had a battery replacement or installed the latest advanced diagnostic software might be eligible for compensation. Specifically, owners who implemented the final software remedy at a GM-authorized dealership before Dec. 31, 2023, may receive up to $1,400. Additionally, those who sold or terminated their vehicle's lease before the availability of the software remedy, as well as those who previously received a battery replacement, will be entitled to a minimum payment of $700.
GM ceased production of the Bolt EV last year, clearing the path for newer EV models. The move was part of a broader strategy shift after the company announced a billion-dollar recall campaign in 2021 to address the battery fire risks, a situation that significantly halted Bolt production and sales for more than half a year.
