President Biden May Veto LG-SK Battery Lawsuit

WP "Damage to US Companies if SK Georgia Plant Construction Stops"

[Asia Economy Reporter Hwang Yoon-joo] As the final ruling of the International Trade Commission (ITC) lawsuit over electric vehicle battery trade secret infringement between LG Energy Solution and SK Innovation is scheduled for the 10th (local time), an analysis suggests that even if LG Energy Solution wins, U.S. President Joe Biden could exercise a veto.

On the 6th (local time), The Washington Post (WP) reported, "SK Group is making the largest foreign investment in Georgia's history ($2.6 billion) to build a battery factory," adding, "LG has filed a lawsuit with the ITC claiming SK infringed on its intellectual property rights, and if SK loses, Ford's pickup truck 'F-150' and Volkswagen, which produces electric vehicles in Tennessee, could be impacted."

If the ITC issues a final ruling against SK, the import of SK Innovation's battery cells, modules, and various parts into the U.S. will be prohibited, and producing batteries in U.S. factories will become impossible.

Previously, President Biden expressed his commitment to significantly support the manufacturing and sales of American-made electric vehicles under the 'Buy American' pledge. Even before his election, he announced plans to replace 3 million government vehicles with electric vehicles, reinstate electric vehicle subsidies, and expand electric vehicle charging infrastructure, all in line with this commitment. Notably, since July last year, the United States-Mexico-Canada Agreement (USMCA) requires electric vehicles to be made with parts produced in the U.S. to reduce tariff burdens. Among electric vehicle battery companies, LG Energy Solution and SK Innovation are the largest investors in the U.S.

WP explained, "If the ITC rules in favor of LG, President Biden can overturn that decision," noting, "There have been five instances where a president overturned an ITC decision, the last being former President Obama during the Apple and Samsung dispute."

However, some opinions suggest that the lawsuit between LG Energy Solution and SK Innovation, which concerns trade secret infringement rather than patents, cannot be directly compared. The U.S. president must decide whether to exercise veto power within 60 days after the ITC's final ruling.

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