U.S. Trade Representative Katherine Tai said the deal “builds confidence” in the reliability and responsibility of the two companies as suppliers to the U.S. auto industry. The agreement puts the United States “in a stronger position to innovate and […] Clean energy technology while respecting the rights of technology innovators at the heart of trade and manufacturing policy,” Tai said. The deal eliminates a major problem for South Korean and U.S. government officials who have spent weeks urging the two sides to reach an agreement. Biden faced an April 11 deadline to decide whether to lift the import ban or do nothing and let it go into effect. His decision revolved around two crucial political issues: the new president`s desire to promote electric vehicles to curb climate change and the country`s longstanding support for strong intellectual property rights. LG Energy Solution points out in its statement that the agreement underscores LG Energy Solution`s commitment to protecting and maintaining a fair and competitive climate in the electric vehicle industry. And: “This agreement also highlights the importance of our intellectual property acquired over the past 30 years.” The deal, he said, allows the two companies to coexist peacefully and compete in the global market in good faith.
Jong Hyun Kim said: “This agreement demonstrates LG Energy Solution`s commitment to protecting and maintaining a fair and competitive climate in the electric vehicle industry. This agreement also underlines the importance of the intellectual property we have acquired over the past 30 years. He also said, “LG Energy Solution is grateful to the U.S. government and stakeholders for their efforts to facilitate this agreement. The deal will help provide a stable battery supply chain for key partners, including Ford and Volkswagen, while allowing SK Innovation to operate its Georgia plant undisturbed. The agreement allows the two companies to coexist peacefully in the global market and compete with each other in good faith. Media reports about the comparison between SK Innovation and LG Chems LG Energy Solution were true. The two South Korean lithium-ion battery manufacturers have officially announced the agreement to end the U.S. International Trade Commission`s (ITC) trade secrets dispute and end the legal dispute. The deal between LG Energy Solution and SK Innovation ended the need for Biden to intervene in a case closely watched for its impact on Biden`s clean energy program, which includes a sharp increase in the number of electric vehicles as part of his plan to fight climate change.
Biden had until Sunday night to make a decision after a trade committee ruled in February. “This settlement agreement is a victory for American workers and the U.S. auto industry,” Biden said in a statement Sunday. U.S. Trade Representative Katherine Tai said the deal followed a “significant commitment” by the government. This settles all legal disputes between companies that started in April 2019. In this agreement, the two companies agreed on the following conditions. With $1.8 billion in cash (over several years), lg Chem`s LG Energy solution will now be in an excellent position to carry out its $4.5 billion investment plan in the United States (annual production capacity of 70 GWh for electric vehicle battery cells). Senator Jon Ossoff “stressed the urgent need for both companies to come to the negotiating table and agree on an agreement to save the Georgia plant,” said Miryam Lipper, spokesman for the Democratic senator. His Fellow Democrat, Senator Raphael Warnock, who is running for re-election in 2022, had also called for a resolution, calling the impending import ban a “blow to the guts” for Georgian workers. The International Trade Commission ruled in February that SK had stolen 22 trade secrets from LG Energy and that SK should be banned from importing, manufacturing or selling batteries in the United States for 10 years. The total cost is substantial and can be compared to the cost of building a large gigafactory for electric vehicle batteries.
There is great relief among SK Innovation`s affected partners. Ford immediately issued a statement saying, “We are pleased that SK Innovation and LG Energy Solution have resolved their differences. This allows us to focus on delivering a range of world-class battery-electric Ford vehicles to our retail and fleet customers, while supporting American workers, the economy and our shared goal of protecting the planet. Scott Keogh, head of Volkswagen Group of America, added something similar: they are happy that the two battery suppliers have settled their differences. Once the contentious issues are resolved, VW is focusing on starting U.S. production of the all-electric ID.4 SUV in 2022. The U.S. International Trade Commission, an independent agency created to protect U.S. markets from unfair trade practices, announced the import ban www.businesswire.com/news/home/20210411005029/en/ businesswire.com On June 10.
It was released in February based on an “extraordinary” effort by SK Innovation to destroy evidence in a trade secret case filed by LG Energy. While it took time to get SK Innovation import components assembled for batteries in Georgia for Ford and Volkswagen vehicles, automakers argued that this was not enough. . Biden said in a statement that building electric vehicles and the batteries needed to do so is an important part of his $2.3 trillion infrastructure plan. The main consequence of the settlement is that all disputes related to electric vehicle batteries in the US and Korea will end and SK Innovation will avoid a 10-year ban in the US due to misappropriated trade secrets. “Georgia`s incredible economic development success continues to grow, and we remain 100 percent committed to developing the entire electric vehicle supply chain here in our state,” said Pat Wilson, Commissioner of the Georgia Department of Economic Development. . For about two years, SK Innovation and LG Chem, or their new battery division LG Energy Solution, have been involved in legal litigation in the United States, and the two companies have also overlapped patent infringement lawsuits in South Korea. However, the legal dispute in the United States was preparing to shake up the eMobility strategies of Volkswagen and Ford. Sk Innovation had debauched LG Chem employees, who allegedly passed on LG Chem`s proprietary know-how for battery development and production to SK Innovation.
LG Chem claimed, among other things, that SK Innovation was only ordered to supply battery cells for Volkswagen`s modular MEB platform because employees recruited by LG Chem disclosed these trade secrets. The decision could have led Ford and Volkswagen to look for batteries, as they are both launching additional electric vehicle models, a priority for businesses and the Biden administration. SK has contracts to manufacture batteries for an F-150 electric Ford pickup truck and an electric Volkswagen SUV. Biden has pledged to create more U.S. production, especially to compete with China. The Asian nation manufactures 73 percent of the world`s lithium-ion batteries, compared to 12 percent in the United States, which ranks first.