President Joe Biden during statements on the U.S. occupation plan in the South Court Auditorium, Eisenhower Executive Office Building, April 7, 2021.
Demetrius Freeman | The Washington Post | Getty Images
President Joe Biden on Sunday declared the agreement between two Korean battery makers a victory for U.S. efforts to build a strong supply chain for electric vehicles in order to create clean energy jobs and curb climate change.
The solution to a trade secret dispute between LG Energy Solution and SK Innovation Co. will allow two plants in Georgia to move forward with plans to produce lithium-ion batteries for Ford and Volkswagen.
The companies agreed to withdraw litigation in the United States and South Korea and not continue lawsuits for a decade. SK Innovation will also pay LG Energy Solution $ 1.8 billion in cash and royalties.
The deal came before the Biden administration’s deadline on Sunday evening to reverse the U.S. International Trade Commission’s decision unless the battery manufacturers reached an agreement.
The deal is a huge win for the Biden administration, which recently unveiled a comprehensive infrastructure plan that includes $ 174 billion in spending to boost the electric vehicle market and move away from running cars. with gas.
“We need a strong, diversified and resilient US-based electric vehicle battery supply chain so that we can meet the growing global demand for these vehicles and components, creating well-paid jobs at home and establishing the bases for tomorrow’s jobs, ”Biden said in a statement.
The president’s proposal involves installing at least 500,000 charging stations nationwide by 2030, incentives for Americans to buy electric vehicles and money to re-equip factories and increase the national supply of materials.
A failure to resolve the dispute may have cost thousands of jobs in Georgia and threatened the country’s electric vehicle market, which accounts for 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 U.S. to prevent the company from importing supplies to make batteries.
SK Innovation threatened to abandon its $ 2.6 billion plant in Georgia, which is under construction and could employ 2,600 workers, unless the ITC decision is overturned. If no agreement was reached, the Biden administration could have had to cancel the ITC to allow SK Innovation to build the plant.
“Today’s settlement is a positive step in that direction, which will bring good relief to Georgia workers and a new opportunity for workers across the country,” Biden said.
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 American and South American electric vehicle battery industries. -coreans “. “
“We are dedicated to working together to support the Biden administration’s climate agenda and develop a strong supply chain in the United States,” they said.