US ITC Orders LG Chem and SK Innovation to Submit Ford and Volkswagen Recordings

[Asia Economy Reporter Park So-yeon]The U.S. International Trade Commission (ITC) has additionally requested LG Chem and SK Innovation to submit transcripts of interviews conducted with automakers Ford and Volkswagen in the ongoing electric vehicle battery trade secret infringement lawsuit between the two companies. Ford and Volkswagen have been automakers opposing the early loss ruling against SK Innovation through petitions submitted to the ITC.

On the 5th (local time), the ITC requested LG Chem and SK Innovation to submit transcripts of depositions conducted by their attorneys with Ford and Volkswagen regarding the secondary battery (battery) trade secret infringement lawsuit filed by LG Chem against SK Innovation.

The ITC had requested related materials from both parties on the 30th of last month, and LG Chem submitted the October 24, 2019 Volkswagen transcript and the November 8, 2019 Ford deposition transcript to the ITC on behalf of both parties' attorneys.

Last year, the ITC issued an early loss ruling (Default Judgment) against SK Innovation in the trade secret infringement lawsuit filed by LG Chem, and the final decision was originally scheduled for the 5th of last month.

However, due to the impact of the novel coronavirus disease (COVID-19), the decision was postponed once to the 26th of last month and then again delayed to the 10th of next month.

While the ITC has not disclosed the reasons for the additional delay, there is analysis suggesting that the final decision was postponed until after the presidential election to avoid announcing sensitive matters related to domestic battery plants during the election period.

Meanwhile, attention is focused on the background of the ITC's repeated request for transcripts from Ford and Volkswagen, who have agreed to supply products produced at SK Innovation's battery plant under construction in Georgia, ahead of the final decision.

Ford plans to source electric trucks of the F-Series produced in the U.S., and Volkswagen intends to procure most of the electric vehicle batteries produced in the U.S. from the Georgia plant currently being built by SK Innovation.

For this reason, Ford submitted a petition to the ITC in May stating, "LG Chem cannot supply alternative batteries for the F-150 electric vehicle," and argued that "the ITC's early loss ruling against SK Innovation will affect the entire U.S. economy, public interest, health, and welfare," expressing opposition.

Volkswagen also claimed, "If the contract between SK Innovation and Volkswagen is destroyed, it will harm American workers seeking high-wage jobs and consumers wanting electric vehicles."

Accordingly, SK is closely monitoring whether the ITC's review of the deposition content again could become a variable affecting the final decision.

If the ITC's early loss ruling is finalized, the import ban on SK Innovation's battery cells, modules, packs, and related parts and materials will take effect in the U.S., making business operations difficult domestically. However, the ITC may propose mediation to additionally consider the public interest or issue a 'remand' instruction on the preliminary decision.

On the other hand, some view that the additional submission request is merely for reviewing materials delayed due to COVID-19 and does not require special significance.

LG Chem stated, "The transcripts previously submitted to the ITC were partial, and this time, the attorneys on both sides were asked to submit the entire script of the depositions conducted with Ford and Volkswagen," adding, "It is just part of the usual ITC activities and is not a matter that would affect the outcome."

However, it remains uncertain whether the ITC will make the final decision as scheduled on December 10. The industry views that, given the chaotic situation due to the U.S. presidential election and the serious resurgence of COVID-19, the possibility of further delays is high.

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