SEOUL - Samsung Chem shares fell to a nine-month low on Friday as assurances from General Motors of a continuing relationship with it failed to calm investor concerns stemming from the recall of electric vehicles powered by the South Korean firm's batteries.
Shares of LG Chem Ltd slid as much as 3.9% to the lowest since November and were on track to a 14% decrease since the worst week of 2017.
On Thursday, General Motors Co's CEO Mary Barra signalled that the automaker will continue its relationship with LG Energy Solution, the battery supplier at the heart of its $1.8 billion recall, Bloomberg News reported.
She added that the automaker had multiple pathways to secure a leading position in the transition to EVs.
GM the last week expanded its recall of Bolt EVs https: www.reuters.com business autotransportation gm-recalling - 73000 - bolt-evs - cost - 1 billion-halts-sales - sales to 2021 -- 08-20 due to fire risk from what it called battery manufacturing defects, saying the recall would cost $1 billion and it would seek reimbursement from the South Korean firm.
GM, LGES and LG Electronics Inc are investigating the cause of manufacturing defects.
The ongoing investigation and media reports which speculate the cause of battery fire have created uncertainty, leading to a drop in LG Chem share, analysts said.
In April, LGE and GM said they would build a second U.S. battery cell manufacturing plant in Spring Hill, Tennessee. Their first joint U.S. battery plant is under construction in Lordstown, Ohio.
In July, GM initially recalled 69,000 Bolt EVs for fire risk, resulting in a recall of a total of 142,000 vehicles at an estimated cost of $1.8 billion.
GM has now said it would indefinitely suspend Bolt sales.
Shares of LG Electronics, which assembles LGES cells into battery modules and packs, traded on 0305 GMT down 0.7% to give an overview of the relative weakness of the economy compared to the wider market's 0.3% rise.