SK Innovation “Unable to accept LG demand that prevents US battery business”

Input 2021.03.26 12:26 | Revision 2021.03.26 12:37

SK·LG’s main general meeting’Battery Workshop’
“Excessive demands” vs. “Get reasonable compensation”

SK innovation (096770)Said in the US International Trade Commission (ITC) that it was “impossible to accept excessive demands” in relation to the lawsuit infringing battery trade secrets against LG Energy Solutions. It is interpreted as a refutation after Vice Chairman Shin Hak-cheol said at the LG Chem shareholders’ meeting the day before that “I will take strict measures so that I can receive reasonable compensation.”

SK Innovation Director Lee Myung-young said at the SK Innovation regular shareholders’ meeting held in Seorin Building in Jongno-gu, Seoul on the morning of the 26th, “We cannot accept the demands of competitors that significantly lower the competitiveness of the battery business and make the US business unsustainable.” Through the remaining legal procedures, we will do our best to protect the shareholders’ interests and improve corporate value.”

Director Lee Myung-young served as the chairman of the shareholders’ meeting on behalf of SK Innovation CEO Kim Joon, who was unable to attend the shareholders’ meeting due to a business trip to the United States. It is reported that Kim Joon is working on a last minute persuasion to draw out the president’s veto over the ITC decision that SK Innovation issued an order to ban battery imports from the United States, meeting with US political officials.

“It is very unfortunate that ITC has admitted that it is not clear what trade secrets are, but cited the dubious arguments of competitors without judging the facts of the infringement of trade secrets, which is the essence of the case because of the lack of document management. “I said.

“Our battery has been recognized for its discriminatory competitiveness in terms of stability and quality, such as no fire accidents,” he said. “There is no point in continuing the battery business in the US “I restate that it is unacceptable,” he emphasized.

The two companies are continuing their battles at the shareholders’ meeting with about fifteen days left for the US presidential veto to decide on ITC. ITC raised LG’s hand in a battery business secret infringement lawsuit filed by LG Energy Solutions against SK Innovation last month. If the U.S. President does not veto ITC decisions by the 11th of next month, SK Innovation will be banned from producing and importing batteries in the U.S. for 10 years, except for Volkswagen and Ford, which received a grace period of two and four years.

Initially, the industry predicted that LG Energy Solution and SK Innovation would come to an agreement as soon as possible, but negotiations are being delayed due to the wide gap in the amount of settlement that the two companies hope for. It is known that LG Energy Solution requires more than 3 trillion won, while SK Innovation wants to reach an agreement in the 1 trillion won range.