Biden Heading to Georgia... Will SK Innovation Receive Support?

Residents Oppose ITC Decision
Watching Sensitive Public Opinion on Jobs and More

President Joe Biden of the United States

[Asia Economy New York=Correspondent Baek Jong-min, Reporter Choi Dae-yeol] U.S. President Joe Biden is set to visit the state of Georgia this week. This visit is drawing attention as it takes place amid repeated requests from SK Innovation and influential local politicians for the president to exercise his veto power over the U.S. International Trade Commission (ITC) decision.

The deadline for President Biden to veto the ITC's 10-year import ban on SK Innovation batteries is June 11. Having ordered a review of key domestic industrial and material supply chains, including batteries, attention is focused on whether President Biden will side with SK Innovation, which has promised large-scale local investments.

According to the White House on the 15th (local time), President Biden and Vice President Kamala Harris will visit Atlanta, Georgia, on the 19th to announce a $1.9 trillion economic stimulus package. This will be their second visit following Pennsylvania.

President Biden's visit to Georgia carries significant meaning. Georgia, once a Republican stronghold, played a decisive role in Biden's election victory, and the Democratic Party's majority in the Senate was also secured thanks to the Georgia Senate runoff election wins. This makes it inevitable for President Biden to closely monitor public opinion trends in Georgia.

Raphael Warnock, U.S. Federal Senator

Georgia politicians from both parties are opposing the ITC's decision. Previously, the ITC ruled that SK Innovation infringed on trade secrets of LG Energy Solution (formerly LG Chem's battery division) and imposed a 10-year import ban. Local politicians argue that this measure could hinder employment in Georgia as well as the development of the electric vehicle industry, which is being promoted as part of climate change response efforts. SK Innovation's battery plant in Commerce, near Atlanta, is scheduled to begin mass production in the first half of this year.

Republican Governor Brian Kemp recently urged President Biden once again to veto the ITC's decision. Democratic U.S. Senator Raphael Warnock also called for government measures, stating that "the 2,600 jobs to be created by SK Innovation's under-construction plant are under serious threat." In response to Senator Warnock's pressure, Polly Trottenberg, nominee for U.S. Deputy Secretary of Transportation, said she would "review the ITC ruling."

LG Energy Solution has also sought to ease public opinion in Georgia. According to the local daily Atlanta Journal-Constitution (AJC), Kim Jong-hyun, CEO of LG Energy Solution, emphasized in a letter to Senator Warnock that "we are ready to do everything we can to help Georgia residents and workers," highlighting the possibility of directly establishing a plant.

SK Innovation battery plant located in Commerce near Atlanta, Georgia, USA. The first plant has been completed and will begin mass production in the first half of this year, and the construction of the second plant has also been confirmed, aiming for mass production the year after next.

This statement assumes that SK will withdraw from the U.S. market following the enforcement of the ITC import ban, but the industry views its feasibility as low. This is because the Biden administration is unlikely to favor one battery company exclusively. To grow the electric vehicle market, diversification of the battery supply chain, a key component, is essential. According to market research firm IBISWorld, LG's share of the U.S. lithium battery market was 11% last year, second only to Panasonic's 46%. From the U.S. perspective, having as many players as possible in the local battery market is beneficial.

Kim Jong-hoon, former Chief Negotiator for Trade and current Chairman of SK Innovation's Board, recently wrote in an internal column, "Last month, President Biden signed an executive order to review supply chains for semiconductors, rare earths, medical equipment and pharmaceuticals, and key materials and components for electric vehicle batteries." He added, "This appears to be an effort to proactively reduce dependence on China for critical materials and components essential to next-generation industries and to eliminate security risks, which is expected to have significant economic repercussions depending on the outcome."

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