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LG Energy Solution and SK Innovation were able to reconcile, which will allow the second to maintain access to the US market
eleven.04.2021 [06:23],
Alexey Razin

A patent dispute between two Korean manufacturers of lithium batteries lasted from June 2021, by February of this year, it materialized into a ban by ITC on the import and manufacture of SK Innovation products in the United States for a period of ten years. President Biden retained the power to veto the decision until Sunday, but the parties were reconciled without his intervention.

Image source: Bloomberg

Bloomberg was the first to announce the reconciliation of the parties, refusing to disclose the exact details of the agreement between LG Energy Solution and SK Innovation. The issue of withdrawing claims in exchange for serious monetary compensation was raised by the parties earlier, but SK Innovation called the discussed amount unaffordable. An exchange of shares would help to avoid cash payments, but there is no evidence yet that it has taken place.

Recall that the decision of the US International Trade Commission (ITC) prohibited SK Innovation from importing or producing locally lithium batteries into the country for ten years. As an exception, they were given the opportunity to supply them to Ford Motor for four years, and Volkswagen for two.

LG Energy Solution Completes Ohio Electric Traction Battery Facility to Supply General Motors Products. Another $ 2.3 billion facility will be built in Tennessee, and a battery production facility in Michigan is already operational. SK Innovation has a nearly $ 2.6 billion plant close to completion in Georgia, but the fate of which, if the ITC decision came into force, remained in question. It is planned to build another enterprise in the neighborhood, which will provide jobs for 6,000 local residents. In the future, it could supply batteries not only to Ford and Volkswagen.

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