SK Ino petitions ITC to postpone relief orders… “The US battery factory could be abandoned”

SK Innovation has petitioned the US International Trade Commission (ITC) to postpone the remedy order in relation to the infringement of trade secrets. Through a petition, SK Innovation suggested that it could give up its battery factory, and it is reported that it conveyed concerns that thousands of jobs and environmental values ​​could disappear.

According to industry sources on the 28th, SK Innovation requested that the ITC’s decision to ban the import of battery products from the United States for 10 years be delayed until the appeal procedure of the Federal Circuit Court of Appeals in the future.

This petition is made on a procedural basis, and it is interpreted to be to minimize the negative effects that may occur in the future business.

Last month, the ITC ordered ’10 years to ban imports from the US’, saying that SK Innovation’s battery cells, modules, packs, and related parts and materials violated Article 337 of the US Customs Act, which violated LG Energy Solutions’ trade secrets. However, imports were allowed for Ford’s electric pickup truck F150 battery parts and materials for 4 years, Volkswagen MEB battery parts and materials for 2 years, and battery products for repair and replacement of batteries for Kia electric vehicles already sold.

In 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.”

“SK is building a billion-dollar electric vehicle battery plant in Georgia, USA,” he added. “The commission’s order will eventually lead to abandonment of the battery plant in Georgia, and thousands of jobs and environmental values ​​will disappear.”

In addition, he added, “The volkswagen electric vehicle platform (MEB) and the Ford electric truck F-150 were deferred, but it is difficult to expect a significant recovery from SK’s facility investment.” “He emphasized.

SK Innovation is currently constructing the first battery plant (9.8GWh) and the second plant (11.7GWh) for electric vehicles in Georgia, USA. They are targeting mass production in the first quarter of next year and the next year, respectively, and the total investment amount is 3 trillion won.

The last variable surrounding the battery dispute is whether the president of the United States exercised the veto. Since the final decision of the ITC is confirmed by the President, there is high interest in whether to use the right to veto. The deadline for the veto is April 11th.

Accordingly, major executives, including SK Innovation general president Kim Joon and the former head of the trade negotiation headquarters Kim Jong-hoon, SK Innovation’s chairman of the board of directors, have recently stayed in the United States and are persuading the president to exercise his veto.

SK Innovation CEO Kim Joon is reportedly on a business trip to the US on the 25th, the day before the general shareholders’ meeting. President Kim Joon is said to have a position with local factory inspections and US government officials on this business trip.

Prior to President Kim Joon’s business trip, SK Innovation’s Chairman of the Board of Directors Kim Jong-hoon also stayed in the United States to inform the unfairness of ITC sanctions. Chairman Kim, who led the Korea-US FTA negotiations as head of the trade negotiation headquarters, is evaluated that he has a variety of personal connections including political, business, and academic circles in the United States.

Specifically, the US government and political parties that Chairman Kim met are unknown, but they are known to persuade them by mentioning the damage caused by the US battery import ban. In addition, SK Innovation is also mobilizing local personnel to overturn the final ITC decision, such as recruiting former vice minister of Justice Sally Yates.