US ITC Import Ban Takes Effect Today... No Issues for SK Inno Battery Plant Construction

[Asia Economy Reporter Hwang Yoon-joo] LG Energy Solution has effectively won the electric vehicle battery trade secret infringement case, and import bans within the United States will take effect starting today. However, SK Innovation's U.S. battery business, including the construction of battery plants, will not be immediately halted.

The U.S. International Trade Commission (ITC) has ordered SK Innovation's import ban on batteries and related components within the U.S. to be enforced from the 10th (local time). Based on a violation of Section 337 of the U.S. Tariff Act, the ITC ordered a 10-year import ban on batteries and related components by SK Innovation in the U.S. It also issued a "10-year injunction to cease trade secret infringement," prohibiting the production, distribution, and sale within the U.S. of items already imported that infringe on trade secrets.

However, the ITC allowed SK's customers, Ford, a 4-year import allowance, and Volkswagen a 2-year allowance. Imports of battery products for repair and replacement of batteries used in Kia electric vehicles already sold in the U.S. were also permitted.

Thanks to the grace period, SK Innovation is proceeding smoothly with the construction of its Plants 1 and 2 in Georgia, U.S. Plant 1 is producing prototypes after completion and will supply Volkswagen with batteries for 200,000 electric vehicles annually starting next year. Plant 2 is scheduled for completion next year and will supply batteries for 230,000 units annually for Ford's F-150 electric truck series starting in 2023.

The industry views the ITC's decision as effectively giving both companies time to reach an agreement. Applying the full 10-year import ban on SK Innovation would disrupt the electric vehicle launch schedules of Volkswagen and Ford, which have factories in the U.S.

A battery industry official said, "It can be interpreted as establishing the principle of intellectual property (IP) protection while minimizing the impact on automakers and companies like SK Innovation that have invested in the U.S."

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