LG “can take over SK battery plant in the US”… Possibility of establishment in Georgia

Enter 2021.03.14 12:26 | Revision 2021.03.14 13:06

While Georgia Governor Brian Kemp requested President Joe Biden to exercise his veto against the US International Trade Commission (ITC) decision, LG Energy Solutions (formerly LG Chem (051910)Battery Business Division) SK innovation (096770)It expressed its position that it could take over the existing factory in China. It is interpreted to relieve local concerns that thousands of jobs may be lost if SK Innovation’s Georgia plant is closed.

According to the local media AJC on the 12th (local time), Kim Jong-hyun, president of LG Energy Solutions, made such a statement in a letter to State Senator Rapier Warnock on the 10th. President Kim stressed that “LG is ready to do anything to help Georgia residents and workers.”

He explained that if an outside investor takes over SK’s Georgia plant, LG may participate as a partner in operating it. President Kim predicted, “Because of the growing demand for electric vehicle batteries, many investors and manufacturers (SK’s Georgia state) will be interested in the commerce plant.”

LG Energy Solutions announced on the 12th that it will invest more than 5 trillion won in the US by 2025 to build two or more battery production plants. The candidates for the new plant are expected to be decided before June, and LG has not disclosed the area under consideration. There is also a prospect that Georgia could be included as an area for building new factories in the future with LG’s move.

The day before, Georgia Governor Brian Kemp sent a letter to President Joe Biden, asking him to overturn ITC’s ban on the import of SK Innovation batteries. In a letter, he said, “SK’s electric vehicle battery plant, which will be built in Commerce, Georgia, is expected to employ 2,600 people, and the $2.6 billion (about 2,954.9 billion won) investment by SK to build the plant is the largest foreign investment ever in Georgia.” Emphasized.

Governor Kemp then introduced that SK plans to expand the plant by 2025 to increase the number of employees to 6,000, and to increase battery production and annual output to 50 GWh (gigawatt hours). “SK’s explanation that if the president does not overturn the ITC decision that would make the Georgia plant economically unsustainable, it would be forced to close the plant,” he asked again to exercise the veto power to the ITC decision.

On the 10th of last month, the ITC ordered SK to ban the import of some lithium-ion batteries for 10 years, saying that SK infringed on LG’s battery trade secrets. However, it also decided to postpone the import of Ford and Volkswagen batteries and parts for production in the US for a certain period of time. In response, SK is demanding the White House to exercise the president’s veto.