Settlement Reached in ITC Battery Import Ban
Two South Korean companies that make lithium-ion batteries in the U.S. have reached a settlement to end a case at the International Trade Commission that had led to an import ban on SK Innovation for theft of trade secrets (see 2102120021). The settlement was announced April 11, which was also the deadline for the White House to say if it would overrule the ITC. If the import ban had remained, SK Innovation had said it would not be able to continue plans for a large battery plant in Georgia, which will supply domestic electric vehicle production at Ford and Volkswagen. LG Energy Solution is in a joint venture with General Motors in Lordstown, Ohio, building a plant to produce vehicle batteries.
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The companies will withdraw all legal disputes in the U.S. and South Korea, and agreed not to bring any others for 10 years; SK Innovation will pay LG $1.8 billion in installments, and royalties. “LG Energy Solution and SK Innovation have decided to settle to compete in an amicable way, all for the future of the U.S. and South Korean electric vehicle battery industries,” said Jong Hyun Kim, CEO and president of LG Energy Solution, and Jun Kim, CEO and president of SK Innovation. “We are dedicated to work together to support the Biden Administration’s climate agenda and to develop a robust U.S. supply chain.” LG said it is close to finalizing a second joint venture plant with GM.
U.S. Trade Representative Katherine Tai released a statement welcoming the news. “I congratulate both companies for working through their significant differences to resolve this dispute, which builds confidence in their reliability and responsibility as suppliers to the U.S. auto industry,” she said. “After significant engagement with a range of stakeholders, we are in a stronger position to drive innovation and growth of clean energy technology envisioned in the American Jobs Plan while also respecting the rights of technology innovators at the heart of trade and manufacturing policy.”
President Joe Biden gave Tai credit for bringing the two companies together. In a statement released April 11, he said, “A key part of my plan to Build Back Better is to have the electric vehicles and batteries of the future built here in America, all across America, by American workers. We need a strong, diversified and resilient U.S.-based electric vehicle battery supply chain, so we can supply the growing global demand for these vehicles and components -- creating good-paying jobs here at home, and laying the groundwork for the jobs of tomorrow. Today’s settlement is a positive step in that direction, which will bring some welcome relief to workers in Georgia and new opportunity for workers across the country. I want to thank Ambassador Katherine Tai for her tireless work to resolve this dispute and facilitate a settlement that is good for America’s future in the electric vehicle industry, and good for job creation. “