LG Chem-SK Inno Battery Lawsuit, Proxy Battle Among Global Automakers

Ford and Volkswagen Express Concerns Over Electric Vehicle Production if SK Innovation is Sanctioned
GM and Ohio Provide Support to LG Chem

[Image source=Yonhap News]

[Asia Economy Reporter Hwang Yoon-joo] The electric vehicle battery lawsuit between LG Chem and SK Innovation appears to be escalating into a proxy battle among global automakers.

According to foreign media, on the 21st (local time), Ford of the United States and Volkswagen of Germany conveyed to U.S. authorities their concerns that the lawsuit outcome between LG Chem and SK Innovation could disrupt electric vehicle production in the U.S.

In documents submitted to the U.S. International Trade Commission (ITC) in May, both companies appealed that SK Innovation should not be prohibited from importing parts necessary for producing electric vehicle batteries into the U.S.

In February, the ITC issued a 'Default Judgment' against SK Innovation in the trade secret infringement lawsuit filed by LG Chem. SK Innovation immediately filed an objection with the ITC, and a review began before the final ruling scheduled for October.

If the ITC upholds LG Chem's victory in the October final ruling, the import of battery cells, modules, packs, and related parts and materials from SK Innovation, which infringed trade secrets, will be banned in the U.S.

The reason Ford and Volkswagen conveyed their opinions to U.S. authorities is that both companies decided to source electric vehicle batteries from SK Innovation. Accordingly, they are making related investments aiming to produce electric vehicles in the U.S. by 2022. In particular, Ford plans to invest a total of $11.5 billion in electric vehicle production by 2022 and launch the F-150 electric model in 2022.

Volkswagen reportedly requested the ITC to allow SK Innovation to produce batteries in Georgia even if it violated regulations.

SK Innovation is currently constructing a battery plant in Georgia to supply Volkswagen. LG Chem stated that it can meet the battery demand of Ford and Volkswagen, but both automakers have shown a negative stance on this.

On the other hand, GM, which is building a joint venture for electric vehicle batteries with LG Chem, and the state of Ohio, where the joint plant will be located, have come out in support of LG Chem.

Ohio Governor Mike DeWine submitted a statement to the ITC in May, saying, "SK Innovation stole LG Chem's intellectual property," and warned, "If this unfairness is not corrected, LG Chem's investment, which could create at least 1,100 jobs in the U.S., may be curtailed."

GM also sided with LG Chem in an April statement, emphasizing that "intellectual property and trade secrets must be thoroughly protected."

LG Chem is also reported to have recently submitted a statement criticizing SK Innovation's credibility, citing the fact that over 30 Koreans attempting to illegally enter the U.S. to work at SK Innovation's Georgia plant were caught and deported by U.S. authorities, as well as evidence destruction related to the battery lawsuit.

This content was produced with the assistance of AI translation services.