The Bolt electric vehicle recall would cost General Motors a total of $1.2 billion, with LG Chem and LG Electronics bearing the lion's share of the estimated costs.

The recall, which will replace LG battery modules owing to a fire risk, was expanded to over 140,000 cars in August, with a cost estimate of $1.8 billion.

On Tuesday, the LG companies announced that cost negotiations had come to an end. Although some expenditures were registered in the previous quarter, they booked the majority of their 1.4 trillion won in costs in the July-September quarter.GM Now Making Zero Electric Vehicles As Bolt Production Pauses

LG Chem, whose fully owned battery company LG Energy Solution supplies batteries to GM, will take a charge of 620 billion won for the latest quarter, while LG Electronics, which assembles the cells into battery modules and packs, will book charges of 480 billion won.

Investors are relieved that the worry regarding recall costs has passed, as shares of LG Chem and LG Electronics closed up 4.2 percent and 3.3 percent, respectively.

LG Energy Solution also stated that the company intends to resume work on its initial public offering (IPO), which was put on hold in August owing to a lack of clarity on recall costs.