US Georgia and Tennessee House Representatives Urge Settlement of LG and SK Battery Dispute

[Asia Economy Reporter Hwang Yoon-joo] Some lawmakers from Georgia and Tennessee, U.S., who have interests in the electric vehicle battery lawsuit between LG Energy Solution (LG Chem's battery business division) and SK Innovation, have sent letters to both companies urging them to reach a settlement.

According to industry sources on the 13th, three lawmakers?Republican Congressman Buddy Carter of Georgia, Democratic Congressman Sanford Bishop of Georgia, and Republican Congressman Chuck Fleischmann of Tennessee?sent letters to LG Chem and SK Innovation. The letters were drafted on the 8th and sent on the 10th, the same day the ITC announced a third postponement of its final decision.

In the letter addressed to LG Chem Vice Chairman Shin Hak-cheol and SK Innovation President Kim Jun, Congressmen Carter, Bishop, and Fleischmann stated, "Both companies have significantly contributed to economic growth and job creation across the United States," adding, "If one company receives an adverse ruling from the ITC, it will negatively impact the U.S. economy and public interest."

Georgia hosts SK Innovation's electric vehicle battery plant, and Tennessee is home to Volkswagen's electric vehicle plant, which will be supplied with SK Innovation batteries. Therefore, if an unfavorable ruling against SK is finalized, significant damage is inevitable.

The lawmakers mentioned SK Innovation's investment in the Georgia plant and Volkswagen's electric vehicle investments, pointing out that "(An unfavorable ruling against SK) would cause great harm not only to American consumers who use electric vehicles but also to American workers across various supply chains."

They emphasized, "Considering the impact on the U.S. economy, we respectfully urge both parties to find a 'feasible, amicable, and responsible' resolution to the dispute."

Meanwhile, the U.S. International Trade Commission (ITC) made a preliminary ruling in February this year in favor of LG Energy Solution in the lawsuit filed against SK Innovation. The final ruling was originally scheduled for October 5 but has been postponed three times, with the final decision now expected on February 10 next year.

If the final decision in February confirms SK Innovation's loss as originally planned, SK will be prohibited from exporting battery parts and materials to the U.S., rendering the battery plant currently under construction in Georgia inoperable and banning the import of battery-related components.

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