Photo = Korea Economic Daily DB
SK innovation(275,500 +5.76%)And LG(97,200 +3.51%)Despite the US International Trade Commission’s (ITC) ruling that gave LG’s hand in the lawsuit for infringement of the electric vehicle battery trade secrets of Energy Solutions, SK Innovation requested the White House to intervene.
On the 1st (local time), the Wall Street Journal (WSJ) reported that the US ITC’s decision last week that SK Innovation issued a ’10 years ban on imports from the US’ for infringement of trade secrets at the White House negatively impacted the EV battery plant under construction in Georgia. I submitted a document stating that I could give it.
Earlier, LG Energy Solutions applied for an investigation to the US ITC, claiming that SK Innovation has removed manpower and infringed trade secrets regarding rechargeable battery technology used as batteries for electric vehicles. Through this, LG claims that SK has won orders worth tens of trillion won.
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. If the two companies fail to reach an agreement within 60 days, the deadline for exercising the U.S. presidential veto, the ITC ruling will take effect immediately, and SK Innovation will be banned from producing and importing batteries in the U.S. for 10 years.
It is analyzed that SK Innovation’s request for the involvement of the White House this time aimed at the fact that the ITC’s decision, which is an administrative agency, must ultimately be approved by the President. The President can veto ITC decisions for policy reasons.
SK Innovation is building plants 1 and 2 that can produce 430,000 units of electric vehicle batteries per year (21.5GWh) by investing about 3 trillion won in Georgia. When this factory is completed, an additional 3,400 jobs could be created by 2025, according to SK Innovation.
According to the WSJ, Georgia’s governor Brian Kemp, where the factory is being built, also demanded a veto from President Joe Biden. However, LG also said that the ITC’s decision should not be reversed after meeting with trade-related personnel from the Biden administration last week.
Even after the US ITC ruling on the 10th of last month, the two companies have entered the battery dispute’round 2’with a gap in settlement money. It is known that LG Energy Solution is asking for more than 3 trillion won, while SK Innovation is hoping for less than 500 billion won. SK argues that LG’s demand is excessive, but LG is in a position that it has set the size of the settlement based on the Federal Trade Secret Protection Act (DTSA).
Meanwhile, analysts say that the two companies will resume negotiations as soon as the US ITC releases the full text of the ruling specifically specifying the reasons for SK Innovation’s loss this week. Until now, the ITC has released the full text two weeks after the announcement of the final decision, but the release time has been delayed by 2-3 weeks from the scheduled date since last year due to the novel coronavirus infection (Corona 19).
Seongsu Bae, reporter Hankyung.com [email protected]
Ⓒ Hankyung.com prohibits unauthorized reproduction and redistribution