Ford Urges Settlement in LG-SK Battery Dispute

Jim Farley Ford CEO "Benefits for US Electric Vehicle Manufacturers and Workers"

[Image source=Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] American automaker Ford has urged LG Energy Solution and SK Innovation, who are in conflict over a trade secret infringement lawsuit involving electric vehicle batteries, to voluntarily reach a settlement.

Jim Farley, CEO of Ford, stated on Twitter on the 11th (local time), "An agreement between the two electric vehicle battery suppliers would ultimately be in the best interest of American electric vehicle manufacturers and workers."

The day before, the U.S. International Trade Commission (ITC) recognized that SK Innovation had infringed on LG Energy Solution's electric vehicle battery trade secrets and issued a 10-year import ban on raw materials and finished products of batteries produced by SK.

However, the ITC allowed a grace period for Ford and Volkswagen, who source SK batteries in the U.S., permitting imports for 4 years and 2 years respectively.

LG pressured SK to actively pursue a settlement following the ITC decision, but SK responded by stating it intends to overturn the ITC ruling and hopes for a veto from U.S. President Joe Biden.

However, industry insiders believe that President Biden, who has consistently emphasized improving unfair trade practices and protecting intellectual property rights, is unlikely to exercise a veto over the ITC decision concerning a trade secret infringement dispute involving foreign companies rather than domestic firms.

Ford is also interpreted to have publicly expressed the opinion that the LG-SK parties should promptly resolve the dispute through a settlement amid growing uncertainty over SK battery imports.

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