The US Congress of Georgia, where SK Innovation’s electric vehicle battery plant is located, has adopted a resolution calling for an agreement on the battery dispute between LG and SK.
The attention is focused on the background of the revised direction of the resolution to the content that the Senate of the state legislature, which had previously argued that President Biden should exercise the right to veto, is calling for an agreement between the two companies.
According to foreign media such as The Newnan Times-Herald, a local media in Georgia on the 24th, the Senate of the Georgian state parliament unanimously passed a resolution on the 23rd (hereinafter referred to as local time).
The resolution is now on the verge of passing the House of Representatives. Although this resolution is not legally binding, it is likely to have some influence on the formation of public opinion in the US over the battery lawsuits of both companies.
In the resolution, the Senate of the State Assembly said,’In order to preserve local battery supply chains and jobs, SK Innovation’s plant should be prevented from closing.’
Georgia Senator Burch Miller, a Republican, expressed concern that “the loss of the SK Innovation factory will cost the state billions of dollars in public and private investment in Georgia, and hundreds of people will be unemployed.”
Senators from the Democratic Party also stressed that a solution should be prepared without closing the factory.
Senator Jen Jordan of the Democratic Party said, “When there is uncertainty in both companies, we have to push them. We can reach an agreement. We hope that jobs will be preserved (through agreement between the two companies).”
The U.S. International Trade Commission (ITC) made a final decision on the 10th of last month to ban the production and import of some lithium-ion battery cells, modules, and packs from SK Innovation for 10 years in the United States.
If President Biden does not exercise his veto during this period, the ruling will take effect on the 12th of the following month, 60 days after the date of the final decision.
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Accordingly, the Senate of the Legislature previously proposed a resolution stating that President Biden should exercise the veto power, but revised the resolution in the direction of calling for an agreement between the two companies through consultation.
Georgian Governor Brian Kemp, a former Republican, has also asked the White House to overturn the ITC decision. Since then, LG Energy Solutions is said to have tried to persuade state officials to minimize damage to Georgia as a result of the battery lawsuit.