US President Biden’s visit to Georgia last December. EPA=Yonhap News
U.S. President Joe Biden is expected to visit Georgia on the 19th, and LG Energy Solutions and SK Innovation, which are in conflict over the infringement of electric vehicle battery trade secrets, are on the verge of being at the fore. Georgia is where SK Innovation invests about 3 trillion won to build a battery factory, and President Biden decides whether to exercise the veto by the 11th of next month on the decision of the US International Trade Commission (ITC) to lose SK.
According to local media such as the Atlanta Journal-Constitution (AJC) on the 16th, President Biden will visit Georgia and other regions on the 19th (local time). The SK plant site is located 125 kilometers northeast of downtown Atlanta. The local media reported that President Biden’s visit to Georgia was to promote the recently announced $1.9 trillion in economic stimulus package.
In Georgia, the battery dispute between LG and SK and the ITC’s decision are of great interest. In particular, Georgia Governor Brian Kemp from the Republican Party criticized SK’s 2600 clean energy jobs and investments in innovative manufacturing immediately after the announcement of the ITC decision (February 10). In addition, Democratic Party Senator Rafael Warnock of Georgia also argued, “The ITC decision poses a serious threat to the operation of a Georgia plant under construction by SK investing $2.6 billion and jobs for 2,600 people.” Also, Georgia, the traditional Republican support base, gave Biden power in the last presidential election. Biden won the presidential election in Georgia with 49.5 percent of the vote, overtaking Donald Trump (49.3 percent).
Democratic Senator Rafael Warnock, elected from Georgia. AFP=Yonhap News
LG is also responding sensitively to local public opinion in Georgia. LG first put forward a 5 trillion won investment plan in the US by 2025. LG Energy Solutions President Kim Jong-hyun sent a letter to Senator Warnock, saying, “LG is ready to do everything it can to help Georgia residents and workers.” “If an outside investor takes over SK’s plant, LG will participate as a partner. I can,” he said. President Kim added, “As the demand for electric vehicle batteries is increasing, many investors and manufacturers will be interested in the SK plant.” Even if SK is unable to operate the plant, other companies will take over and local jobs will be maintained.
As such, the battery dispute between the two companies has changed from a legal dispute to a public opinion battle. On the day, SK criticized that “(LG’s investment in US 5 trillion won) was announced to impede the business of rival companies.” LG also said through the response data, “As a perpetrator of a trade secret infringed by a competitor, it is the core of the matter that it is necessary to compensate the victim for damage.
Reporter Sunwook Choi [email protected]
