Two South Korean electric-vehicle battery makers reached a last-minute settlement in a bitter U.S. trade dispute, sparing President Joe Biden from choosing between undermining intellectual property rights or dealing a politically toxic blow to his climate agenda.
SK Innovation Co. agreed to pay 2 trillion won ($1.8 billion) to LG Energy Solution, a unit of LG Chem Ltd., according to a statement from the two companies. The payment is divided equally in cash and royalties, they said.
Shares of SK Innovation surged as much as 18% in early Seoul, and was trading while LG Chem gained as much as 4%. The deal is a “major positive” for SK Innovation, Morgan Stanley analysts said in a note to clients.
LG and SK settle EV battery dispute
12-04-2021
25-08-2020
LG Energy Solution and SK Innovation have resolved a multibillion dollar trade secrets dispute over electric vehicle (EV) batteries, sidestepping a USITC decision that would have barred SK from importing its batteries into the US.
In a joint statement from the two South Korean companies, LG and SK announced they will be dropping all litigation and have signed a non-assertion agreement covering the US or South Korea for the next ten years.
As part of the agreement, SK will pay LG ₩2 trillion ($1.8 billion), comprising several lump-sum payments as well as running royalty fees.
LG and SK agree to settle battery dispute
Apr 12, 2021, 08:48 am
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LG and SK have finally ended their legal battle. The agreement comes hours before the Sunday night deadline for the U.S. International Trade Commission (ITC)’s import ban on SK. The two companies announced Sunday that they settled the battery dispute and will withdraw all their battery-related lawsuits at home and abroad. The last-minute settlement clears the prolonged legal risks to focus on their business in the United States.
LG Energy Solution and SK Innovation issued a joint statement, saying, “The two companies agreed to end all battery dispute in the USITC.”
Apr 12, 2021
WASHINGTON (AP) Two big South Korean electric vehicle battery makers said Sunday they have settled a long-running trade dispute that will allow one company to move ahead with plans to manufacture batteries in Georgia. President Joe Biden called it “a win for American workers and the American auto industry.”
The agreement between LG Energy Solution and SK Innovation ended the need for Biden to intervene in a case closely watched for its implications on Biden’s clean-energy agenda, which includes a sharp increase in the number of electric vehicles as part of his plan to address climate change. Biden had until Sunday night to make a decision, following a ruling in February by a trade commission.
11 Apr 2021 / 09:21 H.
(Adds more details, no immediate comments from companies, USTR)
By David Shepardson and Hyunjoo Jin
WASHINGTON, April 10 (Reuters) - South Korean battery makers LG Chem and rival SK Innovation Co have agreed to settle a trade secrets dispute that has threatened a key Georgia plant and the electric vehicle plans of Ford Motor Co and Volkswagen AG, three sources briefed on the matter said.
The Biden Administration through the U.S. Trade Representative s Office (USTR) faces a Sunday night deadline on whether to take the rare step of reversing a U.S. International Trade Commission decision. An announcement of the settlement is expected soon.