Georgia, which has changed its position, passes resolution to call for LG-SK agreement

Georgia, which had demanded President Joe Biden’s veto power over the ruling of the US International Trade Commission (ITC) battery lawsuit by LG Energy Solutions (LGES) and SK Innovation (SKI), changed its attitude and called for an agreement between the two companies.

According to industry and foreign media on the 24th, the Georgia Senate unanimously passed a resolution on the 23rd (local time) urging the SKI to negotiate for an agreement without shutting down its local factories in the United States.

This is a revised content from a resolution previously urged by President Biden to veto the ITC ruling. The revised resolution is passed through the House of Representatives and finally adopted.

In addition to securing competitiveness in the United States, concerns about job losses appear to have been attributable. “The loss of the SK Innovation plant will cost Georgia’s public and private investment billions of dollars and result in hundreds of people unemployed,” said Republican Senator Burch Miller of Georgia.

Senator Jen Jordan of the Democratic Party said, “When there is uncertainty in both companies, we have to push them down,” he said. “But they can reach an agreement and hope that this will preserve their jobs.”

However, the two companies still have a large difference in position over the settlement amount according to the ITC ruling. SKI maintains its position that it cannot accept the 2 trillion won settlement fund requested by LGES, and is expecting President Biden to exercise his veto power. On the other hand, LGES has emphasized that “SKI must come to an agreement with sincerity.”

In the industry, the Georgia Senate’s resolution is not legally binding, but it is likely to have some influence on the formation of public opinion in the United States over the battery lawsuits of both companies.

A SKI official said, “It would be better to see the Georgia Senate’s judgment as a means of hoping that the situation will be resolved as soon as possible, rather than criticizing it.”

Meanwhile, SKI has hired former U.S. Deputy Justice Sally Yeats as U.S. business advisor to elicit the presidential veto. According to foreign media, former Vice Minister Yeats said in an interview with a local US media, “President Biden should reject the ITC ruling that neutralizes electric vehicle battery factories in northeast Georgia.”