South Korean battery maker LG Energy Solutions said on Monday that it would decide in October whether to complete its initial public offering (IPO) this year as planned, as a car recall involving LG batteries cast a shadow over the company's prospects.

The company said in June that it planned to complete the IPO process by 2021. It is widely believed that the IPO will be the largest ever IPO in South Korea, raising between $10 billion and $12 billion.

But earlier this month, General Motors Co of the United StatesIt has announced a recall of more than 140000 Chevrolet Bolt electric vehicles to improve LG battery modules at risk of fire, and the cost of the recall is estimated to be $1.8 billion. GM also said it would seek compensation from LG.

General Motors Co, LG Energy Solutions and LG Electronics are still investigating the cause of GM's so-called manufacturing defects. "the size of the additional provisions for the third quarter will be decided later, depending on the progress of the joint investigation by the three companies," LG Energy Solutions said in a statement on Monday.

LG Energy Solutions also said that GM is an important customer with more than 10 years of strategic cooperation, and the two companies will continue to work closely together in the future.

Cho Hyun-ryul, an analyst at Samsung Securities, said: "this does not mean that the LG energy solution will withdraw its IPO plan, but the listing may be delayed, depending on the negotiations with General Motors Co."