(Reuters) Shares of battery maker LG Chem plunged 10% on Monday following news that General Motors Co. would recall 73,000 Chevrolet Bolt cars.
LG Chem was weighed by the news since the Chevrolet Bolt cars use its batteries, the recall happening after another one by Hyundai Motors.
GM cites fire risk in the recall, which is connected to defects in battery manufacturing.
GM projects the expected recall to cost about $1 billion, with the company seeking compensation from LG.
LG said it is working to facilitate a smooth recall, with the targeted vehicles beginning from model year 2019.
The recall is a blow to LG Chem, which is already preparing to list its battery unit LG Energy Solutions.
LG Chem lost about $5 billion in market value following the stock plunge, the largest intraday loss since March 2020.
051910: KRX is down -11.14%, 066570: KRX is down -4.10%, GM: NYSE is down -2.15% on premarket.
