Shin Hak-cheol, CEO of LG Chem, which wholly owns the battery making unit LG Energy Solution Ltd., said it is “regrettable” that SK Innovation refuses to accept a U.S. trade panel’s ruling on the trade secret case and continues lobbying efforts to nullify the decision.
On Feb. 10, the U.S. International Trade Commission sided with LG in the trade secret case over its lithium-ion battery technology and issued a 10-year import ban on SK Innovation, while giving temporary permits to batteries and components needed to make products for Ford and Volkswagen in the United States in order to allow them to find new partners.
“Looking back on my global business experience over the last three decades, the ITC’s ruling on trade secret misappropriation and even mentioning of its corporate culture underlines the graveness and seriousness of this case,” LG Chem CEO Shin Hak-cheol said in the annual meeting of shareholders at the Seoul headquarters.
“We can’t let go of this case for global companies that are developing technologies on the belief of fair competition and clients who make purchases on the belief they were lawfully made.”
SK claims it does not need LG’s trade secrets as its development and manufacturing method of EV batteries is different from its rival and received an unfavorable ITC ruling due to destruction of evidence.
The ruling could jeopardize SK Innovation’s $2.6 billion battery factory currently under construction in Georgia if President Joe Biden does not veto the ruling within 60 days or the two companies do not reach a compromise within the presidential review period.
The two sides attempted to find ways to resolve the row after the ruling earlier this month, but they failed to reach a compromise over the big gap in the settlement amount.
According to industry sources, LG demanded a bigger amount of compensation from SK than it had before the ITC decision, which was nearly 3 trillion won (US$2.6 billion)
In response to SK’s claim that the closure of the Georgia factory may cost American jobs and disrupt the crucial EV supply chain in the U.S., LG said it could fill in the void of its rival.
Earlier this month, LG announced plans to invest more than $4.5 billion by 2025 to expand its battery production capacity in the U.S. and build at least two plants.
