LG-SK US ITC Final Verdict D-11... What Is the Outcome of the 'Battery Endgame Lawsuit'?

Fateful Day on the 26th... Possibility of Settlement After the Verdict

[Asia Economy Reporter Park So-yeon] The final ruling by the U.S. International Trade Commission (ITC), the biggest turning point in the 1.5-year-long battery lawsuit between LG Chem and SK Innovation, is just 11 days away. According to the business community on the 15th, the ITC's final decision will be announced on the 26th (local time). Although both companies are involved in more than 10 civil and criminal lawsuits domestically and internationally, this ITC final ruling is considered extremely important as it could impact not only LG Chem, which entered the U.S. market?the world's third-largest electric vehicle market?early, and the latecomer SK Innovation, but also global battery industry players such as CATL. Since most other trials often base their conclusions on the ITC's decision, this ruling is expected to significantly influence the competitive landscape in the battery market, which is worth approximately 180 trillion won.

◇Three Final Verdict Scenarios= The industry anticipates three main scenarios for the ITC's final ruling. The first is that SK Innovation loses without any additional procedures, following the early loss ruling in February. After the ruling, the U.S. President must decide within 60 days whether to impose an import ban. If the final ruling is upheld, an import ban could be imposed in the U.S. on battery cells, parts, and equipment produced by SK Innovation that are recognized as infringing on another company's trade secrets. Some analysts suggest that in this case, the Trump administration might veto the ITC's decision. This is because SK Innovation's plan to establish a battery plant, which includes 2,000 promised jobs and a $2.6 billion (approximately 2.9827 trillion won) investment, could be canceled.

The second scenario is a compromise ruling. The ITC may acknowledge the contents of the previous early loss ruling while closely examining the public interest aspect. A public hearing would be held to further assess whether SK Innovation continuing its battery business in the U.S. aligns with the interests of the U.S. and the industry. The ITC would listen to opinions from stakeholders such as state and city governments and partner companies within the U.S. Based on the hearing results, the decision on whether to impose an import ban on SK Innovation's battery products will be made.

The last scenario is that the ITC issues a directive to amend the preliminary ruling made in February. This would effectively mean a full re-examination.

◇Post-ITC Verdict Moves by LG and SK= Both sides maintain their stance to diligently engage in the lawsuit until the end but are also leaving the door open for a settlement after the ruling. If SK Innovation receives a final loss ruling from the ITC, posting a bond can temporarily suspend the effect of the ITC's import ban order. If a review is requested from the U.S. administration, a conclusion on the import ban will be reached within 60 days. During this period, if the two companies reach a settlement within 60 days after the ITC ruling, the import ban will be withdrawn.

SK Innovation may also appeal the ITC's decision to the U.S. Court of Appeals for the Federal Circuit. This is an administrative lawsuit separate from the civil lawsuit in the Delaware Federal District Court. The Delaware Federal District Court lawsuit is currently on hold but will resume soon if LG Chem requests to restart after the ITC ruling. It is expected to take about two years until the final verdict. If LG Chem wins in the Delaware Federal District Court, in addition to monetary damages, the production, distribution, and sale of SK Innovation's trade secret-infringing products will be banned nationwide in the U.S. A battery industry insider said, "Even if the trade secret infringement is recognized and SK Innovation loses, how the remedy is implemented is more important."

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