A Backlash from SK Innovation
SK Innovation reacted strongly on March 16 to LG Energy Solution’s attempt to expand its presence in the U.S. electric vehicle (EV) battery market by taking advantage of the recent U.S. International Trade Commission’s ruling.
The ITC ruled last month that SK Innovation misappropriated EV battery trade secrets of LG Energy Solution. It banned SK Innovation from importing EV batteries and parts to the U.S. for 10 years.
LG Energy Solution is trying to use the ITC’s verdict as an opportunity to oust SK Innovation from the U.S. electric battery market. On March 5, it announced a half-baked plan to invest 5 trillion won to build a new EV battery plant in the U.S. It even wrote to a senator from Georgia, suggesting that it is willing to take over SK Innovation’s plant under construction in the state.
But the investment plan was criticized by the media as an attempt to eliminate SK Innovation from the U.S. market. While announcing a plan to invest 5 trillion won in the U.S. until 2025, LG Energy Solution did not even announce the list of the candidate sites for its new factory.
LG Energy Solution’s moves also caused a strong backlash from SK Innovation. "After the ITC’s decision, LG Energy Solution announced a hastily drafted investment plan with little substance simply to block the exercise of the U.S. presidential veto over the ITC’s ruling," SK Innovation said in a statement.
It noted that LG Energy Solution announced the investment plan without issuing a public disclosure regarding its investment decision.
SK Innovation said, “The U.S. society is already well aware that the actual purpose of announcing such a half-baked investment plan is simply to prevent the U.S. president from exercising his veto and to disrupt the business of its rival. This will only amplify negative feelings of American people toward LG Energy Solution.”
Regarding LG Energy Solution's reference to the Georgia plant, SK Innovation said, “This shows that LG is also well aware that our battery plant in Georgia has a significant impact on the local community and economy. This is the very reason why the U.S. president should overturn the ITC’s ruling.”
The company went on, "Despite LG's behavior, Georgia Gov. Brian Kemp’s trust in SK Innovation is still strong. He has asked President Biden to exercise his veto."
In addition, SK Innovation blasted LG Energy Solution for lying. On March 5, LG Energy Solution said SK Innovation is lukewarm about talks on compensation to the point of failing to appear in the negotiation room.
SK Innovation revealed that high-ranking officials from the two companies had met earlier this month, and said, "If LG Energy Solution agrees, we are willing to disclose the details of the negotiation." It added, “It is very disappointing that LG Energy Solution lies to paint a negative image of SK Innovation.”
Meanwhile, the top executives of the two companies met at a place in Seoul on March 5 to resume negotiations but failed to narrow their differences over the amount of compensation. SK Innovation's board of directors recently reaffirmed the company’s position that it will continue to negotiate, but reject excessive demand for settlement funds.
SK Innovation said, “If LG Energy Solution has suffered damage due to SK Innovation’s infringement of its trade secrets, it can get a sufficient remedy through legal proceedings that will take place in the future.” It also said, “We expect the U.S. president to make a wise decision that would allow the two companies to settle their dispute in court without burdening the U.S. economy.”