LG Energy and SK Innovation kiss and put on makeup, promise to work together in harmony

0
12



[]).push(function () { viAPItag.display(“vi_1088641796”) }) || []).push(function () { viAPItag.display(“vi_1088641796”) })

The great battery dust is over. With hours to go, the Biden administration was due to approve or reverse the U.S. International Trade Commission decision that would have barred SK Innovation from building batteries in the U.S. for 10 years – though, with exceptions. limited to appease Ford and Volkswagen – LG Energy Solution and SK Innovation have agreed to settle their differences. There were huge sighs of relief from everyone involved, including the two Georgia Senators, Governor Brian Kemp, the new US Trade Representative, Volkswagen, Ford, plus a few administration officials. Biden and many others on the ground in Georgia and the south. Korea.

The best compromise is one in which no one is completely happy, they say. In this case, LG Energy had strongly demanded that SKI publicly admit that it stole proprietary information when it hired 40 top engineers two years ago. He wanted SKI to apologize for his bad behavior, which SKI said he would never do, even if hot splints were placed under his leaders’ fingernails. LG Energy wanted more than $ 5 billion in damages. In the end, he agreed to accept $ 1.8 billion, with part paid in cash now and the rest in royalty payments over the next several years.

SKI official said Reuters once a settlement is reached, “we expect our payment schedule will not be a financial burden.” This should tell you how much money the company hopes to make by manufacturing batteries in the United States and elsewhere. As part of the deal, the two companies agreed to drop all litigation in the United States and South Korea and not to bring any further lawsuits against each other for a period of 10 years. “The two companies can now coexist in the global market and compete in good faith,” LG Energy Solution said in a statement. SKI has said it will actively invest both in South Korea and overseas now that uncertainties over its EV battery business in the United States have been lifted.

U.S. Trade Representative Katherine Tai said in a statement on Sunday that the deal leaves the United States in a stronger position to spur innovation and growth in clean energy technologies envisioned in the U.S. plan for ’employment while respecting the rights of technological innovators at the heart of trade and manufacturing policy’, according to the Washington Post.

Scott Keogh, CEO of the Volkswagen Group of America, also applauded the result. “With the intellectual property issues between the two companies now settled, our goal is now to focus where it should be: the start of US production of the fully electric ID.4 SUV in 2022, assembled by proud and skilled workers. in Tennessee. “

SK Innovation had threatened to suspend work on its new $ 2.6 billion battery plant in Commerce, Georgia, about 70 miles northeast of Atlanta. This plant is expected to employ 1,000 workers by the end of this year and more than 2,600 when it becomes fully operational in a few years. The batteries made there are intended for use in Volkswagens produced in Chattanooga, Tennessee, and in the upcoming electric version of the Ford F-150. The State of Georgia has agreed to provide up to $ 300 million in economic assistance to commission the Commerce plant.

The peace settlement removes the Biden administration and allows it to avoid overturning the ITC decision, which is rarely done. Nonetheless, the administration had apparently sent signals to LG Energy that it was prepared to do so precisely if the two sides could not resolve their differences. We noted in an article last week that there would likely be a high profile arm twist in Washington, DC this weekend, and apparently we were right.

LG Energy Solution may be on the hook for some of the nearly $ 1 billion it will cost Hyundai to replace LG-supplied batteries that have been involved in fires in several Hyundai models. LG will therefore send money to Hyundai and receive money from SKI. Eventually, everything will balance out and the electric vehicle revolution will move towards a better – and highly profitable – future. All’s well that ends well, we suppose. From our perspective, anything that accelerates the future of the electric car is good news.

Hat tip with earwig. Thank you my friend!


Do you appreciate the originality of CleanTechnica? Consider becoming a CleanTechnica Member, Supporter, Technician, or Ambassador – or Patreon Sponsor.

Have a tip for CleanTechnica, want to advertise, or would like to suggest a guest for our CleanTech Talk podcast? Contact us here.


New podcast: Cruise talks about autonomous driving technology, regulation and automotive design

New podcast: Battery mining policies and regional trends

!function(f,b,e,v,n,t,s)
{if(f.fbq)return;n=f.fbq=function(){n.callMethod?
n.callMethod.apply(n,arguments):n.queue.push(arguments)};
if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version=’2.0′;
n.queue=[];t=b.createElement(e);t.async=!0;
t.src=v;s=b.getElementsByTagName(e)[0];
s.parentNode.insertBefore(t,s)}(window,document,’script’,
‘https://connect.facebook.net/en_US/fbevents.js’);
fbq(‘init’, ‘438121713776676’);
fbq(‘track’, ‘PageView’);

[]).push(function () { viAPItag.display(“vi_1088641796”) }) || []).push(function () { viAPItag.display(“vi_1088641796”) })

LEAVE A REPLY

Please enter your comment!
Please enter your name here