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Microsoft Office Picture Manager
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SK Innovation Hopes To Bypass US Lithium Battery Import Ban
Last week, the US International Trade Commission (ITC) sided with the latter in a dispute between SK Innovation and LG Energy Solution, banning the first of two Korean companies from importing and manufacturing lithium batteries in the United States for ten years. The loser now hopes to reach an agreement with LG Energy Solution that will allow the business to resume.
Image source: Reuters
According to the Nikkei Asian Review, SK Innovation officials said Monday that the ITC decision will not undermine the company’s willingness to seek the right to resume supply of lithium batteries in the United States and to organize their production in that country. The main task is to achieve the right to produce traction batteries for electric vehicles produced in the USA. So far, regulators are allowing SKI to continue supplying batteries for Ford Motor’s needs for four years, and for Volkswagen’s for two years. Korean company is building two battery cell factories in Georgia with a total budget of about $ 2.7 billion.
LG Energy Solution does not disclose the monetary equivalent of its claims against a competing company, but it is known from knowledgeable sources that it should be approximately twice the amount of damage caused by the alleged theft of intellectual property. According to SK Innovation, we are talking about the amount of several billion US dollars, which seems unjustified and unaffordable to it. LG Energy Solutions, according to the opponent, does not want to make concessions on the amount of compensation, but SKI is ready to conduct long negotiations. Outside experts expect the parties to reach a compromise within about sixty days.