Korean battery makers settle dispute that threatened Biden's green agenda

[CHICAGO] Two South Korean manufacturers of electric vehicle batteries that are building plants in the United States said Sunday that they had reached a US$1.8 billion settlement in a trade secrets dispute that threatened the domestic battery supply and, with it, the Biden administration's green agenda.

The announcement came on the day of a deadline set by the United States' trade representative to decide whether to veto an International Trade Commission ruling in the intellectual property case between LG Energy Solution and SK Innovation. The commission's ruling in favor of LG had threatened SK with a ban on supplying batteries in the country and put its facility under construction in Georgia at risk.

The plant, which is still under construction, will supply batteries for electric vehicles for Ford and Volkswagen, and with the settlement agreement, SK is now also free to seek business from other companies.

The dispute had threatened the domestic supply of batteries for electric vehicles. The settlement prevents delays in the development of American electric vehicles and supplies.

Georgia's politicians, both Democrats and Republicans, had been pressuring President Joe Biden to act on their state's behalf. Gov Brian Kemp, a Republican, wrote to the president last month asking him to veto the commission's decision for the sake of Georgia's economy and the thousands of jobs that would be created at the battery plant.

"I congratulate both companies for working through their significant differences to resolve this dispute, which builds confidence in their reliability and responsibility as suppliers to the US auto industry," the trade representative, Katherine Tai, said in a statement on the settlement.

Mr Biden called the settlement agreement "a win for American workers and the American auto industry" in a statement on Sunday. "A key part of my plan to Build Back Better is to have the electric vehicles and batteries of the future built here in America, all across America, by American workers." As part of their agreement, SK Innovation will give LG Energy Solution a total of 2 trillion won (S$2.42billion) in lump-sum and royalty payments. They have also agreed to withdraw all pending disputes in the United States and Korea and not assert any new claims for the next 10 years.

NYTIMES