LG Energy Solution said on Tuesday that it has restarted procedures for an IPO after settling the cost of the recall of Chevrolet Bolt EV with General Motors.
The South Korean battery maker had started the procedure back in June but halted it from the US carmaker announcing an additional recall of the 73,000 units of the electric vehicle.
LG Energy Solution expects the fee to replace battery modules from the recall to be 1.4 trillion won in total.
The bill will be split with LG Energy Solution.
LG Energy Solution’s parent company said it reflected the cost of 620 billion won in its third quarter earnings.
LG Electronics also reflected a cost of 480 billion won in its third quarter earnings for the recall
This means General Motors will likely be covering 300 billion won of the cost.
LG Chem and LG Electronics had reflected some costs of the recall on their second quarter earnings this year.
On what caused the fires on Bolt EV, LG Energy Solution said it is suspecting that they are caused by both the anode tab being cut and the separator being pushed.
The battery cells used in the car model were manufactured by LG Energy Solution and assembled by LG Electronics.