The $2 Billion Fire Retreat Of The Chevy Bolt Hovers Over The Electric Vehicle Market.

General Motors has extended the recall of its electric Chevrolet Bolt over concerns about a possible battery fire, adding 73,000 vehicles to a total of about 142,000 cars - each of which Chevy has sold to date.

The total drawdown will reach nearly $2 billion as the auto industry plans to launch dozens of new electric models over the next 24 months in a bid to meet President Joe Biden's electric vehicle goal of reaching 50% of total US sales by 2030. GM's electric range includes introducing the all-electric Hummer and Cadillac Lyriq electric pickups, which will use different battery technology from the Bolt.

The problem seems to be a manufacturing defect that can cause a battery short even when parked.

"In rare cases, batteries supplied to GM for these vehicles can have two manufacturing defects - a faulty anode and a folded separator - in the same battery cell, increasing the risk of fire," the company said in a statement.

GM initially advised owners to limit charging but later announced it would recall the initial 69,000 EV bolts to replace the suspicious package, which would cost about $800 million.

It's not the only manufacturer grappling with electric vehicle fire issues. For example, Hyundai recalls about 90,000 of its Kona EV models because "the risk of fire while parking, charging and driving increases."

The problem with the Kona seems to be the same as the Bolt model from GM: A manufacturing flaw in the battery from LG Chem, one of the biggest manufacturers of lithium-ion technology. 

Other manufacturers, including electric car giant Tesla, have been in the news about battery fires. 

In December, a house in the suburbs of San Diego was destroyed when a Tesla Model S caught fire while charging in a garage. Investigators blamed a faulty thermal management system designed to keep the battery cool.

However, the coverage of electric car fires can be overstated, said Sam Abuelsamid, senior automotive analyst at Guidehouse Insights. For example, seven Chevy bolts burned, or about 0.006 percent on the road. In comparison, the National Fire Protection Association reports that 212,000 cars running on gasoline and diesel burned in 2018, or about 0.07% of vehicles on US roads.

"Yes, we have seen some burnt batteries, but the numbers are small and need to be watched out for," Abuelsamid said.

However, industry officials privately admit they are concerned about the potential impact of electric car fires if the industry invests billions in converting to battery power. The new models eased concerns about the scope, and prices started to fall. Manufacturers don't need fire to give drivers another reason to hold back the current.