South Korean electric vehicle battery manufacturers SK Innovation and LG Energy Solution have reached a settlement in a US trade dispute, Bloomberg reportedUnder the terms of the agreement, SK will pay $ 1.8 billion (2 trillion won) in cash and royalties to LG.
In a joint statement, the companies said they “would work to help the development of the EV battery industry in South Korea and the US. through healthy competition and friendly cooperation, “adding that they would” work together to strengthen the battery network and environmentally friendly policies pursued by the Biden administration. “
In February, the US International Trade Commission imposed a 10-year import ban on SK Innovation – which goes into effect Sunday – after allegations that it illegally obtained technology from rival LG.
The settlement prevents an import ban on SK Innovation batteries into the US, which would have been problematic for the Biden administration. Ford and Volkswagen will both begin production of electric vehicles next year, using batteries made at SK’s Georgia plant.
“This settlement agreement is a victory for American workers and the American auto industry,” said President Biden said in a statement Sunday“An important part of my plan to build better again is to have the electric vehicles and batteries of the future built here in America, all over America, by American workers. We need a strong, diversified and resilient US electric vehicle battery supply chain to meet growing global demand for these vehicles and components. “