‘LG-SK battery dispute’ sparked Ford… “I didn’t know I was illegal in dealing with SK before the investigation”

LG SK

[에너지경제신문 나유라 기자] Ford, which is suspected of ignoring SK’s unfair conduct in relation to the electric vehicle battery dispute between LG Energy Solution and SK Innovation, responded that ITC’s assertion was different from the truth, saying, “We have done business with SK before the investigation.”

Ford said on the 5th (local time), “Contrary to ITC’s estimates, Ford devoted itself to three additional battery programs related to SK Innovation even before it was revealed. I will do it,” he said.

Ford said, “We do not tolerate actions that SK is accused of, particularly those that abuse trade secrets and destroy evidence in the course of an investigation.”

Earlier, LG Energy Solutions applied for an investigation to ITC, claiming that SK Innovation has removed manpower and infringed trade secrets regarding rechargeable battery technology used as an electric vehicle battery.

On the 10th of last month, the ITC accepted the claims of LG Energy Solutions and ordered SK Innovation ’10 years to ban imports from the United States’.

In addition, it lowered the grace period for import bans for Ford for four years and for Volkswagen for two years.

ITC stated in the final opinion on the battery dispute between LG Energy Solution and SK Innovation that SK clearly infringed 22 cases of LG’s trade secrets. The information also revealed that SK Innovation would not have been able to develop its own within 10 years.

In its final opinion, ITC acknowledged the 11 categories and 22 trade secrets that LG claimed to have been infringed based on the verification of LG Energy Solutions. These are trade secrets for the entire process, raw material parts specifications, and various manufacturing processes.

Accordingly, ITC determined that 22 trade secrets claimed by LG were subject to legal relief orders, and the period for the US import ban was also set to 10 years in agreement with LG’s claims.

Among them, ITC criticized the problem that Ford, which is supplied with batteries from SK, continued business relations with SK even after SK’s’unfair management’ became known.

ITC pointed out that in the November 2019 ITC investigation, a Ford employee testified of SK’s misconduct, but there was no explanation for why Ford decided to ignore or tolerate SK innovation for pursuing business.

In response, SK Innovation started developing battery technology in 1982 and signed a supply contract in 2011, and argued that “there is no need for LG’s trade secrets,” saying that the battery development and manufacturing method is different from LG.

SK Innovation requested the U.S. government’s intervention, including President Joe Biden’s veto, saying that the ruling could negatively affect the electric vehicle battery plant it is building in Georgia.

Currently, the U.S. Trade Representative (USTR) is reviewing the reports submitted by both companies on ITC decisions. President Biden decides whether to exercise the veto within 60 days of the ITC decision.

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