[서울신문] Governor of Georgia “President asks to overturn the results of LG-SK battery litigation”

The U.S. Governor of Georgia demands the presidential veto on the result of the U.S. International Trade Commission’s (ITC) dispute decision over SK Innovation and LG Energy Solutions

Reuters reported on the 12th (local time) that the US Governor of Georgia asked US President Joe Biden to overturn the results of the US International Trade Commission’s (ITC) dispute over SK Innovation and LG Energy Solutions.

Governor Brian Kemp issued a statement that day and demanded that the decision could hurt SK Innovation’s construction of an electric vehicle battery plant in Georgia and demanded the veto.

“Unfortunately, ITC’s recent decision puts SK’s 2600 clean energy jobs at risk and significant investment in innovative manufacturing during the COVID-19 pandemic,” Governor Kemp argued.

He warned that the long-term outlook for a $2.6 billion SK Innovation plant in Jackson County, Georgia, would be hit hard. This plant is intended to produce batteries for Volkswagen and Ford.

Prior to this, on the 10th, ITC recognized SK Innovation’s infringement of trade secrets in a technical dispute between SK Innovation and LG Energy Solutions, which was called the’Battery Litigation Battle of the Century’, and decided to win LG Energy Solution completely.

LG applied for an investigation to ITC in April 2019, claiming that SK Innovation has removed its manpower and infringed trade secrets regarding rechargeable battery technology used as battery for electric vehicles.

ITC, a quasi-judicial body under the U.S. administration that investigates and regulates unfair trade practices, gave LG’s hand in preliminary trials in February last year and reached the same conclusion in the final trial.

The ITC issued an order for SK to stop infringing trade secrets for 10 years, prohibiting the import of batteries and parts into the United States for infringing trade secrets and prohibiting the production, distribution and sale of imported items in the United States.

However, SK also proposed a postponement measure to allow imports for Ford and Volkswagen, which will supply batteries in the US for a certain period of time.

The decision of ITC, an administrative agency, must be approved by the President. The President has a 60-day review period and can exercise his veto for policy reasons. If President Biden accepts the ITC ruling, SK Innovation will be unable to manufacture and sell in the United States for the next 10 years. If rejected, ITC’s ruling will be meaningless.

SK Innovation is currently building plants 1 and 2 that can produce 430,000 electric vehicle batteries per year (21.5 GWh) by investing about 3 trillion won in Georgia.

Apart from the ICT investigation for the administration’s regulation, LG has filed a lawsuit against the Federal District Law of Delaware for judgment and compensation by the judiciary, and both companies are also in court proceedings.

Reporter Yoon Chang-soo [email protected]