Asian Tech Press (Oct 13) -- South Korean battery supplier LG Electronics Inc. has agreed to pay up to $1.9 billion to General Motors Co (GM:NYSE) over Bolt EV battery fires.

General Motors announced the settlement agreement Tuesday and said its proceeds will be used to recall and repair Chevrolet Bolt EVs and EUVs due to the risk of fires caused by faulty batteries supplied by LG.

This is the U.S. automaker's third recall for the model, which covers all Bolt EVs and EUVs produced since 2017. The faulty batteries have caused at least 13 vehicles to catch fire.

It is expected to cost $2 billion to repair the vehicles, including the complete replacement of some batteries, which is up from an earlier estimate of $1.8 billion.

"LG is a valued and respected supplier to GM, and we are pleased to reach this settlement," said Shilpan Amin, GM's vice president for global purchasing and supply chain, in the statement.

"Our engineering and manufacturing teams continue to collaborate to accelerate production of new battery modules and we expect to begin repairing customer vehicles this month," Amin stated.