Joyce Lee and Heekyong Yang

SEOUL (Reuters). South Korea’s LG Chem Ltd suffered a 20% drop in its quarterly profit Monday due to a one-off cost associated with recalling General Motors (NYSE)’ Bolt electric vehicles.

Refinitiv SmartEstimate calculated that it reported an operating loss of 727billion won ($617.55m) in July-September, against 904billion won the previous year and an average analyst prediction of 893billion won.

LG Chem has taken full control of the electric battery unit LG Energy Solution from GM earlier this month. This is due to the possibility of rare battery defect-related fires.

In a regulatory filing, LG Chem stated that revenue rose by 41% to 10.6 trillion won.

LG and GM reached a $2B Bolt recall cost agreement earlier in the month. This will allow its battery unit to resume its work on its suspending initial public offering.

LG Energy Solution hopes to ride the boom in battery demand as automakers around the world invest billions to speed up a shift to low-emission mobility, and to prepare for a gradual phase-out of internal combustion engine vehicles.

Last week, the company that supplies Tesla (NASDAQ) Inc and Hyundai Motor Co made a deal with Stellantis NV in order to produce EV batteries together.

LG Chem’s shares were up 0.4% versus 0.5% growth.

(1,177.2300 won = $11)