Talks Underway with LG Chem over Ongoing Lawsuits

Ji Dong-seop (far left), CEO of the Battery Division at SK Innovation, visits LG Chem's booth at InterBattery 2020 at COEX in Gangnam-gu, Seoul on Oct. 21.

SK Innovation is considering spinning off its electric vehicle battery business from the financial perspective, said Ji Dong-seop, CEO of the Battery Division at SK Innovation, on Oct. 21. He also said that the company is seeking to continue talks with LG Chem regarding the ongoing lawsuit in the United States, adding that the dialogue channel with LG Chem has been kept open.

Ji made the remarks during a surprise visit to InterBattery 2020 held at COEX in southern Seoul. Ji’s visit to the venue was unscheduled. Furthermore, he visited LG Chem's booth.

Ji mentioned under-the-table talks with LG Chem in a meeting with some reporters at the venue. The remarks drew attention as the U.S. International Trade Commission (ITC) is scheduled to make a final ruling on Oct. 26 (local time) regarding a lawsuit filed by LG Chem against SK Innovation over a battery business secret infringement. Recently, the two companies have not shown any move towards reconcilation.

"Not only is this lawsuit a matter between SK Innovation and LG Chem, but has a significant negative impact on the domestic battery industry," Ji said. "We are trying to talk with LG Chem, believing that it will be better to resolve the issue quickly." Ji hinted that talks have been continued behind closed doors.

Ji brought up the possibility of spinning off the battery division, saying, "We are simply thinking about it and have set no specific schedule for it. There are advantages and disadvantages of spinning off our battery business. The company’s financial division may check the possibility of separating the battery business from SK Innovation."

Ji drew attention by saying that SK Innovation was also considering building more battery plants in the United States. The company is currently building a battery plant in Georgia of the United States, which is scheduled to go live in 2021 and starts volume production of batteries in 2022. "If corporate customers such as Volkswagen, Ford, and Hyundai Motor want to increase battery supply from us, we may build more battery plants," Ji said.

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