WP "LG-SK Battery Dispute Final Agreement... Announcement Today"

Source: WP

[Asia Economy Reporter Yujin Cho] Foreign media reported that LG Energy Solution and SK Innovation have reached a sudden agreement in their battery dispute in the United States.

The Washington Post (WP) and others, citing multiple sources familiar with the matter, reported that the two companies reached a last-minute settlement regarding the trade secret infringement lawsuit, and an announcement is expected as early as the 10th (local time).

This agreement came one day before the deadline for U.S. President Joe Biden to decide whether to exercise his veto power over the final ruling of the U.S. International Trade Commission (ITC).

In February, the ITC ruled in favor of LG Energy Solution in the trade secret infringement dispute filed against SK Innovation, ordering SK to ban the import of components infringing trade secrets for 10 years.

The governor of Georgia, where SK is building a battery plant, requested President Joe Biden to exercise his veto power over the ITC decision, with Sunday the 11th being the deadline for the veto.

WP reported that with this agreement, SK’s Georgia plant construction will continue. The Georgia plant supplies batteries for Ford and Volkswagen electric vehicles.

WP explained, "SK Innovation will be able to complete the construction of a $2.6 billion manufacturing facility and employ 1,000 people by the end of the year," adding, "By 2024, 2,600 employees will mass-produce lithium-ion batteries for about 300,000 electric vehicles, mostly for Ford and Volkswagen."

WP stated that this agreement between the two sides is seen as a victory for President Biden, who wants job creation and the establishment of an electric vehicle supply chain within the United States.

The dispute was resolved at the last minute without President Biden taking sides through his veto power. Since President Biden has emphasized the importance of protecting intellectual property rights while also stressing the need to build an electric vehicle supply chain to address climate change, it was considered difficult for him to side with either party.

The U.S. president can exercise veto power over ITC decisions within 60 days, but WP reported that the only actual case was in August 2013, when then-President Barack Obama overturned the ITC decision banning imports of Apple iPhones and iPads.

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