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SK Innovations Rejects LG’s Offer to Settle U.S. Battery Dispute with Monetary Compensation
A meeting of shareholders of SK Innovations (SKI) was held on Friday. At the event, representatives of the company’s board of directors explained why they will not accept LG’s offer of reconciliation. According to SKI’s management, LG is asking too much for resolving an issue that is still unclear. Clarity will come in two weeks, when the US Trade Representation issues its decision on the dispute.
Image source: Yonhap
Simply put, the plan of the SK Innovations management is the banal «we would only stand the night and hold out for the day». The U.S. Trade Office (USTR) is reviewing an earlier decision by the U.S. International Trade Commission (ITC) to ban SKI from importing and manufacturing lithium batteries for electric vehicles into the U.S. for ten years. The USTR must make its verdict by April 11 and, based on the findings, submit recommendations to US President Joseph Biden (Joe Biden). The current president of the United States, in turn, has the right to veto the ITC decision to ban SKI from producing batteries in the United States.
SK Innovations management rightly hopes — and maybe even uses lobbying channels in the USA — that they will be forgiven for everything. Even the fact that the top management, according to the findings of the initial investigation, knew about the theft of 22 LG battery technologies and demanded to cover up the traces of the crime. SK Innovations is going to invest a lot of money in the American production of batteries, and this may well become immunity to justice. Most likely, the dispute will end with a settlement at some lower level of compensation, but for this it is necessary to stick to our point to the end.
By the way, the well-known company SK Hynix, as you might guess, is part of the SK Group, and LG’s rather large penalties will also indirectly hit this memory manufacturer.