The Fate of Korean Batteries in the Hands of the U.S.

[Asia Economy Reporter Park So-yeon] The final ruling by the U.S. International Trade Commission (ITC) on the battery trade secret infringement lawsuit between LG Chem and SK Innovation has been postponed until the end of next month. Contrary to expectations that settlement procedures would begin immediately after Chuseok, the trial has been extended by about 20 days, causing both companies, which have been engaged in the lawsuit for over a year and a half, to express fatigue.

◇ Postponed Trial, Possibility of Settlement = According to industry sources on the 30th, the U.S. International Trade Commission (ITC), which is handling the 'secondary battery trade secret infringement' lawsuit between LG Chem and SK Innovation, announced that it will postpone the final ruling originally scheduled for the 5th of next month to the 26th, a three-week delay. This means there is an additional three weeks before the final outcome of the lawsuit is announced, but analysis suggests that the possibility of settlement during this period is low. Over more than a year, the emotional rift between the two sides has deepened, and a 'benchmark' is needed to calculate the settlement amount, but the claims of the two companies differ significantly. It is expected that settlement will only be possible after the final ruling. SK's side stated, "Unless the competitor clearly reveals the details of the trade secret infringement and losses, it is impossible to measure the settlement amount," adding, "Since an 'early loss' ruling has already been made and settlement discussions have begun, it would not be bad for both sides to see the conclusion and then settle." LG's side said, "Even though the trial period has been extended, there is currently no particular possibility of settlement," and "It depends on SK's willingness."

◇ The Future of 'K-Battery' Lies in U.S. Hands = It is no exaggeration to say that the future of Korean battery companies depends on the final ruling by the U.S. ITC scheduled for the 26th of next month. The most likely scenario is that the ITC will uphold its preliminary decision and confirm SK's early loss. If the ITC's early loss decision is finalized, an import ban on SK Innovation's battery cells, modules, packs, and related parts and materials in the U.S. will take effect, making business difficult. The second scenario is that the ITC acknowledges the early loss ruling but decides to further examine the public interest. SK Innovation is currently building a battery plant in Georgia, USA. Because of this, in May, stakeholders including the state government, city, customers, and partners submitted statements to the ITC emphasizing SK's significant contributions to the local community. If the ITC holds a public hearing and the outcome shows that continuing SK Innovation's battery business in the U.S. aligns with the interests of the U.S. and its companies, operation of the battery plant in the U.S. may be allowed. The third scenario is that the ITC issues a 'remand' order on the preliminary ruling made last February. This would mean a full re-examination, potentially shifting the lawsuit to a new phase favorable to SK. An industry insider said, "It is quite bitter that the future of our companies depends on a U.S. court," and added, "We will strive to achieve the best outcome for both companies."

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