SK Innovation, LG Energy Solutions settled EV battery lawsuit
SK Innovation and LG Energy Solutions resolve EV battery litigation.
Earlier this month, SK Innovation reached an agreement with LG Energy Solutions and ended a lawsuit over EV batteries in the US and Korea. As part of the settlement, SK Innovation “pays LG Energy Solution 2 trillion won, which equates to approximately 1.8 billion US dollars, divided into flat-rate payments and an ongoing license fee.” In addition, the two companies agreed to withdraw the remaining pending “US and Korea litigation” and agreed on a 10-year non-allegation.
Handshake; Image courtesy of Shutterbug75 via Pixabay, www.pixabay.com
In announcing the settlement, Jong Hyun Kim, CEO and President of LG Energy Solution, and Jun Kim, CEO and President of SK Innovation, released the following statement:
“LG Energy Solution and SK Innovation have decided to mutually choose the future of the US and South Korean battery industries for electric vehicles. We are committed to working together to support the Biden Administration’s climate change agenda and develop a resilient U.S. supply chain. “
Prior to the announcement, SK Battery threatened to cease operations at one of its Jackson County, Georgia, factories and leave the United States unless President Joe Biden declared their support for them. Shortly after announcing the settlement, Biden released the following statement:
“This settlement agreement is a win for American workers and the American auto industry. A major part of my plan to rebuild better is to have the electric vehicles and batteries of the future built here in America by American workers across America. We need a strong, diversified, and resilient supply chain for electric vehicle batteries in the US so that we can meet the growing global demand for these vehicles and components – create well-paying jobs here at home and lay the foundations for the jobs of tomorrow. Today’s settlement is a positive step in that direction, one that will bring welcome relief to workers in Georgia and new opportunities for workers across the country. I would like to thank Ambassador Katherine Tai for her tireless work in resolving this dispute and in facilitating a settlement that is good for America’s future in the electric vehicle industry and good for job creation. My American employment plan will help build on this momentum, create millions of new jobs, support a stronger American auto industry, and ensure we win the electric vehicle markets of the future. “
But what sparked the argument? Well, the dispute arose out of allegations that SK LG stole trade secrets to build the $ 2.6 billion Jackson County plant that would create about 2,600 green jobs. Then, in February, the United States International Trade Commission ruled that the company “attempted to destroy evidence that it had stolen LG 22 trade secrets, now called LG Energy Solutions.”
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