WASHINGTON (AP) – Two major South Korean electric vehicle battery manufacturers said on Sunday that they have resolved a long-running trade dispute that allows one company to move forward with plans to produce batteries in Georgia. President Joe Biden called it “a victory for American workers and the American auto industry.”
The agreement between LG Energy Solution and SK Innovation ended the need for Biden to intervene in a case that is being closely watched due to its implications for Biden’s clean energy agenda, including a surge in the number of electric vehicles as part of its plan to tackle climate change. . Biden had until Sunday evening to make a decision, following a February trade commission ruling.
The companies said in a joint statement that SK will provide LG Energy a total of $ 1.8 billion and an undisclosed royalty. They agreed to drop all pending trade disputes in the United States and South Korea and not file new claims for 10 years.
“We have decided to establish ourselves and compete amicably, all for the future of the US and South Korean electric vehicle battery industry,” said Jun Kim, CEO and President of SK, and Jong Hyun Kim, CEO and president of LG Energie.
The companies pledged to work together to strengthen the EV battery supply chain in the US and support the Biden government’s efforts to promote clean energy policies, including electric vehicles.
The US International Trade Commission decided in February that SK 22 had stolen LG Energy’s trade secrets and that SK should be banned from importing, making or selling batteries in the United States for 10 years.
The decision could have prompted Ford and Volkswagen to look for batteries, as they both roll out additional electric car models, a priority for the companies and for Biden’s administration. SK has contracts to make batteries for an electric Ford F-150 pick-up truck and an electric Volkswagen SUV.
The commission said SK could supply batteries to Ford Motor Co. for four years. and to Volkswagen AG for two years. The decision jeopardized a $ 2.6 billion battery factory that SK is building in Commerce, Georgia.
Democratic Senator Jon Ossoff of Georgia, who jump-started two companies at Biden’s request, said the settlement “ saved the battery factory in Commerce, Georgia, creating thousands of jobs and billions in future investment, and Georgia leader in the production of batteries for electric vehicles for years to come. ″
US Trade Representative Katherine Tai said the deal “instills confidence” in the reliability and responsibility of the two companies as suppliers to the US auto industry. The agreement puts the US “in a stronger position to drive innovation and … clean energy technology, while at the same time respecting the rights of technological innovators at the heart of trade and manufacturing policy,” said Tai.
Senator Raphael Warnock, D-Ga added: “The best way to protect trade workers – and the jobs Georgians were promised – is for the companies involved to negotiate a settlement in good faith.” He said he raised the battery issue at Biden during the president’s visit to Atlanta on March 19.
Biden said in a statement that it will build electric vehicles and batteries needed for them is an important part of its $ 2.3 trillion infrastructure plan.
“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. Today’s settlement is a positive step in that direction, ”said Biden.
Gov. Brian Kemp, R-Ga., Called the settlement “fantastic news for northeast Georgia and our state’s growing electric vehicle industry.”
Ford said in a statement that the deal “allows us to focus on providing a range of world-class Ford electric batteries for our retail and fleet customers, while also empowering the U.S. workforce, the economy and our shared goal. protect the planet, support it. ″
Krisher reported from Detroit.