Totally banned SK batteries from US production and import
Grace period granted to customers Ford and Volkswagen
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LG Energy Solutions (formerly LG Chem’s battery business unit) won the last lawsuit against SK Innovation for the’infringement of trade secrets’ for electric vehicle batteries.
US International Trade Commission (ITC) On the 11th of SK Innovation’s lithium-ion battery. 10It announced that it would completely ban production and imports from the United States for a year. The preliminary decision was quoted from LG’s lawsuit against SK for infringement of trade secrets.
◆LG’s “consistent proposal” pressure… SK “sorry about the results”
As LG won the final victory, SK’s battery business was disrupted. In the future, the import ban on battery cells, modules, packs, parts and materials in the United States will take effect, making US businesses virtually impossible, including battery factories under construction in Georgia.
However, ITC has granted a grace period of four and two years, respectively, so that SK can supply batteries to some vehicles of Ford and Volkswagen. Ford and Volkswagen are in a hurry to find a battery supplier other than SK.
In response to the ruling, LG Energy Solutions said, “This is a result of clearly proven SK Innovation’s technology takeover, and the lawsuit filed by LG Energy Solution is a legal action that should be taken to protect business and shareholder value. It is of great significance that the intellectual property rights that have been built up are legally protected.”
Regarding SK Innovation, he demanded, “Now, I urge you to acknowledge the final decision to infringe trade secrets and show a sincere attitude to close the litigation.”
SK Innovation said, “It is regrettable that this ITC decision has not actually revealed the infringement of trade secrets, which is the issue of the lawsuit.”
“Through the remaining procedures to ensure that there is no disruption in battery production in the United States, SK batteries of high safety and quality in Georgia and the US plant in Georgia will play an essential and key role in the eco-friendly automobile industry that the US government is strongly promoting. “We plan to focus on the impact on public interests, such as being able to create jobs in Korea.”
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SK Innovation is building the first electric vehicle battery plant in Georgia, USA.
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◆LG “SK has taken out key manpower”… Deferred ITC final decision 3 times
The battery lawsuit between the two companies began in 2019. LG Energy Solutions sued SK Innovation in April 2019 to ITC and Delaware District Court for “trade secret infringement”, claiming that SK Innovation removed its employees who are concerned about the leakage of core technologies.
LG claimed that SK has subtracted 76 key personnel from all fields, including R&D, production, quality control, purchasing, and sales, of LG Chem’s battery business division for two years from 2017. In response, SK Innovation immediately opposed and denied it. SK countered that “it went through the process of hiring normal experienced employees, and it was not that SK Innovation came out, but the applicants came by themselves.”
ITCFebruary last year SK Innovation has interfered with the investigation through acts such as destruction of evidence and violation of forensic orders.I made an early loss decision (preliminary decision), SKAt the request of the company, a full review decision was made in April. The ITC was scheduled to make a final decision on the case on October 5 last year, but it has postponed the decision three times and made a final decision on this day.
Prior to the final ruling, it was predicted that the two companies would try to reach an agreement, but disagreements on the amount of the settlement money broke down. LG has requested 2.8 trillion won, but SK is known to stick with the position that it cannot give even 1 trillion won.
ITC Since the lawsuit is a civil lawsuit, the results of the lawsuit can be immediately reversed if the two companies agree even after the final decision. However, with this loss, SK has to rush to an agreement from a more disadvantageous position.
ITC The procedure is similar to that of the Korean administrative trial and goes through the Presidential approval process. President 60It has a working review period and can be vetoed for policy reasons.
Some of the industry has raised the possibility that President Joe Biden will exercise his veto over fears of disruption in electric vehicle production, but analysts say that the ITC gave Ford Volkswagen a grace period for battery supply, virtually eliminating justification for objection.
Reporter Mansoo Choi [email protected]
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