SEOUL (Reuters) – South Korean battery maker SK Innovation Co. Ltd on Thursday said it would not accept any proposal from rival LG Energy Solution to resolve a U.S. legal dispute that would disrupt SK’s industry in that country. .
SK Innovation and LG Chem’s wholly-owned battery division LG Energy Solution has been locked in a dispute over SK’s inappropriate trade secrets claims related to electric vehicle battery technology.
The U.S. International Trade Commission (ITC) visited last month with LG, issuing a 10-year limited exclusion order banning imports into the United States of lithium-ion SK batteries. Such a rule would be invalid if both companies agreed to a settlement.
SK has received proposed terms, including financial compensation, from LG for settlement, someone familiar with the situation told Reuters.
SK declined to comment on specific offers, but said in a statement that it would “closely review the competitor’s terms of application in the future, however, these conditions will not be accepted if they force us thinking that there is no need to continue our battery business in the United States or reduce the competitiveness of our business. ”
U.S. President Joe Biden may overturn ITC’s ruling against SK, which supplies electric car batteries to Volkswagen, Ford Motor Co and Hyundai Motor Co. among others.
The U.S. Department of Transportation said earlier this month it would examine the impact of the ruling on Biden’s green transportation goals. SK has warned it would have halted construction of a $ 2.6 billion battery plant in Georgia if Biden had not used a 60-day presidential review period to reverse the decision.
ITC regulation allowed some exemptions, allowing SK to import parts for battery production for Ford’s EV F-150 program for four years, and for Volkswagen America’s electric vehicle line for two years.
SK currently has an annual capacity of around 40 gigawatt-hours of batteries with plans to ramp up to about 125 gigawatt-hours of batteries in 2025.
Reciting with Heekyong Yang; edited by Jane Wardell