President Joe Biden during comments on the American Jobs Plan at the South Court Auditorium in the Eisenhower Executive Office Building on April 7, 2021.
Demetrius Freeman | The Washington Post | Getty images
President Joe Biden on Sunday declared the settlement between two Korean battery makers a victory for the US efforts to build a strong electric vehicle supply chain to create clean energy jobs and curb climate change.
Due to the settlement of a trade secrets dispute between LG Energy Solution and SK Innovation Co. two factories in Georgia may make plans to produce lithium-ion batteries for Ford and Volkswagen.
The companies agreed to stop the lawsuits in the US and South Korea and not pursue any further lawsuits for a decade. SK Innovation will also pay LG Energy Solution $ 1.8 billion in cash and royalties.
The deal came Sunday night before the Biden administration’s deadline to overturn a US International Trade Commission decision unless the battery makers reached a settlement.
The settlement is a major victory for Biden’s government, which recently unveiled a sweeping infrastructure plan that includes $ 174 billion in spending to boost the electric vehicle market and move away from gas-powered cars.
“We need a strong, diversified and resilient US supply chain for electric vehicle batteries so that we can meet the growing global demand for these vehicles and parts – creating well-paid jobs here at home and laying the foundation for the jobs of tomorrow. . ‘,’ Biden said in a statement.
The president’s proposal includes the installation of at least 500,000 charging stations across the country by 2030, incentives for Americans to buy electric vehicles, and money to convert factories and boost the domestic supply of materials.
Failure to resolve the dispute may have cost thousands of jobs in Georgia and a threat to the country’s EV market, which makes up about 2% of new car sales.
The ITC ruled in February that SK Innovation had stolen trade secrets related to EV batteries and ordered the US to block the company from importing supplies to build batteries.
SK Innovation threatened to leave its $ 2.6 billion factory in Georgia – which is under construction and employs 2,600 employees – unless the ITC decision was rescinded. If no settlement was reached, Biden’s administration may have had to overrule the ITC to allow SK Innovation to build the plant.
“Today’s scheme is a positive step in that direction, which will bring welcome relief to workers in Georgia and new opportunities for workers across the country,” said Biden.
Jong Hyun Kim, CEO of LG Energy Solution, and Jun Kim, CEO of SK Innovation, said in a joint statement that the companies would “compete amicably, all for the future of the US and South Korean battery industry for electric vehicles. “
“We are committed to working together to support the Biden administration’s climate agenda and to develop a robust US supply chain,” they said.