ITC Bans Imports of SK Innovation's Lithium-Ion Batteries
The International Trade Commission is banning importation of lithium-ion batteries from SK Innovation, the ITC said in a notice issued Feb. 10. The ITC issued a Section 337 limited exclusion order on SK batteries, as well as a cease and desist order against SK, after its South Korean rival LG Chem accused the company of stealing trade secrets. The company still may import components for domestic U.S. production of lithium-ion batteries and other parts for Ford Motor Co.'s EV F-150 program for four years, and for Volkswagen of America's MEB electric vehicle line for North America for two years.
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Ford applauded the exception made for the impending line of electric vehicles, but hopes for a settlement. “While we’re pleased the ITC ruling makes way for @Ford to bring to market our groundbreaking electric F-150, a voluntary settlement between these two suppliers is ultimately in the best interest of US manufacturers and workers,” CEO Jim Farley said in a Feb. 11 tweet. An official at LG Energy Solution, the battery subsidiary of LG Chem, expressed openness to settlement talks, Reuters reported.
SK will also be allowed to replace or repair its batteries in Kia vehicles sold to U.S. consumers but will be effectively banned from producing EV batteries in the U.S. unless all materials can be sourced domestically. SK said this ruling could affect President Joe Biden's goals on expanding EV production and combating climate change. “We have serious concerns about the commercial and operational implications of this decision for the future of our EV-battery facility in Commerce, Georgia,” the company said in a statement, as reported by Reuters.