SK Innovation suggests abandonment of US battery factories in ITC relief order

Petition for suspension of effect on ITC’s decision on’LG battery trade secret infringement’
Until April 11, the deadline for President Biden’s veto power… Appeal in case of failure

SK Innovation's first battery plant construction site under construction in Georgia, USA.  (Photo = SK Innovation)

SK Innovation’s first battery plant construction site under construction in Georgia, USA. (Photo = SK Innovation)

SK Innovation used the expression “disastrous” in the US International Trade Commission’s (ITC) decision to ban battery imports and sales in the US for 10 years, indicating that it could abandon its local battery factory.

According to related industries on the 28th, SK Innovation petitioned for a suspension of the remedial orders of the US ITC in relation to the LG battery trade secret infringement case.

Through this petition, SK Innovation said, “The commission’s order of relief is catastrophic,” and said, “It will harm not only SK, but also the public interests of the United States in the long term.”

ITC admitted that on the 10th of last month (local time), SK Innovation infringed on battery trade secrets by removing the core manpower of LG Energy Solutions (at the time, LG Chem). Accordingly, it was decided that SK batteries and parts could not be imported or sold to the United States for 10 years with a relief order. ITC has imposed a four-year and two-year grace period for Ford and Volkswagen, which are expected to receive batteries for electric vehicles from SK Innovation.

In response, SK Innovation showed that it could abandon its billion-dollar electric vehicle battery plant under construction in the United States.

SK Innovation is building an electric vehicle battery plant 1 (9.8GWh) and plant 2 (11.7GWh) in Georgia, USA. The target is to mass-produce batteries in the first quarter of next year and the next year, respectively. The investment amount alone reaches 3 trillion won.

In a petition, SK Innovation emphasized, “The commission’s order of relief will eventually lead to abandonment of the Georgia battery plant.”

The President of the United States may review the ITC decision for 60 days and exercise the veto for reasons such as public interest. The deadline for exercising the presidential veto is until April 11, local time.

Currently, major executives, including SK Innovation general president Kim Joon and SK Innovation Chairman Kim Jong-hoon, formerly head of the trade negotiations headquarters, are known to have been working on persuasion to exercise the presidential veto while recently staying in the US

SK Innovation plans to appeal to the Federal Circuit Court of Appeals if the U.S. president’s veto is not exercised.

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