(Reuters) -General Motors and South Korea's LG Energy Solution, LG Electronics reached a settlement to establish a $150 million fund to provide relief to Chevrolet Bolt EV owners affected by defective batteries, documents filed in a U.S. court on Thursday showed.
General Motors (NYSE:GM) first launched Chevrolet Bolt EVs in 2015, and used batteries made by LG entities as part of a business arrangement with the car manufacturer. GM started recalls in 2020 after it faced numerous complaints about fires in some vehicles.
"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 an emailed statement to Reuters.
"As a result, Bolt owners who received a battery replacement or who have installed the latest advanced diagnostic software may qualify for compensation," the company said.
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, 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 and those who already received a battery replacement will receive a minimum $700 payment, according to the filing.
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.