By Kwanwoo Jun

LG Chem Ltd. shares slumped Monday after General Motors Co. expanded its safety recall of its all-electric Chevy Bolt vehicles carrying possibly faulty LG batteries.

Shares in the South Korean company, which fully owns battery maker LG Energy Solution, fell as much as 9.8% to KRW810,000 in Monday morning trading. The stock was recently 8.9% lower at KRW818,000, underperforming the benchmark Kospi's gains of more than 1%.

Detroit-based GM said Friday that the expanded recall will cost an additional $1 billion, as it added another 73,000 newer Bolt EVs to its recall campaign aimed at addressing fire risks. The auto maker last year recalled about 69,000 older Bolts.

GM said it is working closely with LG Chem to replace the entire battery module with a new one in the affected vehicles.

LG Energy Solution supplies GM with EV batteries. It has a battery plant in Michigan and now plans to build another in Tennessee through a joint venture with GM.

LG Energy Solution plans to list in South Korea in 2021.

Write to Kwanwoo Jun at kwanwoo.jun@wsj.com

(END) Dow Jones Newswires

08-22-21 2249ET