Two of the world’s largest EV battery manufacturers have reached a settlement that President Biden called “a win for American workers and the American auto industry.” The companies, SK Innovation and LG Chem, have been involved in a dispute after LG accused SK of misappropriating trade secrets. LG filed a complaint with the U.S. International Trade Commission in 2019 and the commission ruled in favor of LG, putting a 10-year ban on SK imports.
SK agreed to pay $1.8 billion in cash and royalties to LG in the settlement, and both South Korea-based companies agreed not to sue each other for the next 10 years. The settlement means SK can finish building an EV lithium-ion battery plant in Commerce, GA., which will provide batteries to Ford and Volkswagen.
The deal came just hours before a deadline in which Biden would have needed to decide to overrule the ITC or to let the ruling stand and potentially lose jobs and resources that would help him reach his electric vehicle goals for the U.S. Within Biden’s $2 trillion infrastructure plan is $174 billion set aside for increasing EV sales and production.
“We need a strong, diversified and resilient U.S.-based electric vehicle battery supply chain, so we can supply the growing global demand for these vehicles and components – creating good-paying jobs here at home, and laying the groundwork for the jobs of tomorrow,” Biden said in a statement about the announcement.