SK Innovation says LG offer to resolve dispute needs to protect US business

  • SK has received proposed terms, including financial reparations, from LG for a settlement.
Logos of SK Innovation (L) and LG Chem
Logos of SK Innovation (L) and LG Chem

South Korean battery maker SK Innovation Co Ltd said on Thursday it will not accept any proposal by rival LG Energy Solution to resolve a US legal feud that would cripple SK's business in that country.

SK Innovation and LG Chem's wholly-owned battery division LG Energy Solution have been locked in a dispute over claims SK misappropriated trade secrets related to electric vehicle battery technology.

The U.S. International Trade Commission (ITC) last month sided with LG, issuing a limited 10-year exclusion order prohibiting imports into the United States of SK's lithium-ion batteries. That ruling would become invalid if the two companies agree a settlement.

Also check these Vehicles

Find more Cars
Mg 4 Ev (HT Auto photo)
UPCOMING
BatteryCapacity Icon64kWh Range Icon350 km
₹ 30 - 32 Lakhs
Alert Me When Launched
Tata Sierra Ev (HT Auto photo)
UPCOMING
BatteryCapacity Icon69 kWh Range Icon420 Km
₹ 25 - 30 Lakhs
Alert Me When Launched
Tata Harrier Ev (HT Auto photo)
UPCOMING
BatteryCapacity Icon50 kWh Range Icon400 Km
₹ 22 - 25 Lakhs
Alert Me When Launched
Honda Elevate Ev (HT Auto photo)
UPCOMING
₹ 18 Lakhs
Alert Me When Launched
Tata Punch Ev (HT Auto photo)
BatteryCapacity Icon35 Kwh Range Icon421 km
₹ 10.99 - 15.49 Lakhs
Compare
View Offers
Mg Comet Ev (HT Auto photo)
BatteryCapacity Icon17.3 kWh Range Icon230 km
₹ 6.99 - 8.58 Lakhs
Compare
View Offers

SK has received proposed terms, including financial reparations, from LG for a settlement, a person familiar with the situation told Reuters.

Also Read : Hyundai to use batteries from SK Innovation for its new Ioniq 5 EV: Report

SK declined to comment on specific offers, but said in a statement it would "closely review the competitor's terms of demand in the future, however, those terms will not be acceptable if they lead us to think there is no point in continuing our battery business in the United States or reduce our business competitiveness."

The ITC ruling against SK, which supplies electric car batteries to Volkswagen, Ford Motor Co and Hyundai Motor Co among others, can also be overturned by U.S. President Joe Biden.

Also Read : US governor calls on Biden to overturn trade ruling against SK Innovation)

The U.S. Transportation Department said earlier this month it would analyse the impact of the ruling on Biden's green transportation goals. SK has warned it would be forced to halt construction of a $2.6 billion battery plant in Georgia if Biden does not use a 60-day presidential review period to overturn the decision.

The ITC ruling allowed some exemptions, permitting SK to import components for domestic production of batteries for Ford's EV F-150 program for four years, and for Volkswagen America’s MEB electric vehicle line for two years.

SK currently has an annual capacity of about 40 gigawatt-hours of batteries with plans to ramp that up to about 125 gigawatt-hours of batteries in 2025.

Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape.

First Published Date: 11 Mar 2021, 09:26 AM IST
NEXT ARTICLE BEGINS

Check Latest Offers

Please provide your details to get Personalized Offers

Choose city
+91 | Choose city
Choose city
Select a dealer

Want to get the best price for your existing car?

Powered by: Spinny Logo
By clicking "View Offers" you Agree to our Terms and Privacy Policy
Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.