SK Innovation’s Board Chairman Urges U.S. President to Veto ITC Ruling

Kim Jong-hoon, chairman of SK Innovation (SKI)'s board of directors, recently visited Washington, DC to deliver an ultimatum to the Biden administration: Overturn the U.S. International Trade Commission’s 10-year ban on SKI imports of electric vehicle (EV) battery components or lose billions in investment, the Inside U.S. Trade reported on March 19 (local time).

The Inside U.S. Trade is a subscription-fee-based daily online news service specializing in trade news.

The ITC last month ruled that SKI misappropriated EV battery trade secrets from LG Chem, banning SKI from importing EV battery parts into the U.S. for 10 years.

Kim recently visited the construction site of SK Innovation’s battery factory in Georgia. After visiting the factory, he is staying in the U.S. while meeting with U.S. government officials.

According to the Inside U.S. Trade, Kim stressed the need for President Biden to exercise his veto during his meetings with U.S. politicians, saying, "If the import ban is finalized as determined by the ITC, we will not be able to run the factory in Georgia." Kim repeatedly appealed to stakeholders that the future of SK Innovation depends on the U.S. president’s decision.

Kim also expressed concerns about a deepening shortage in battery supply and a failure to create jobs when SKI’s Georgia plant cannot fully operate, according to Inside U.S. Trade. A former minister for trade, Kim has a broad network of politicians and business leaders in the United States.

The deadline for the U.S. president's veto on the ITC ruling is April 11. If President Biden does not exercise his veto until the deadline, SK Innovation will be banned from producing batteries in the United States for 10 years except for those for Ford and Volkswagen, for which grace periods are four and two years, respectively.

Initially, industry insiders predicted that LG Energy Solution and SK Innovation would settle the dispute out of court, but negotiations are being delayed due to a wide gap between the two companies over settlement money. LG Energy Solutions is reportedly demanding more than three trillion won, while SK Innovation is offering less than two trillion won.

"If the amount of compensation demanded by LG Energy Solution is excessive, we cannot accept it," SK Innovation's board of directors said in an audit committee meeting earlier this month.