President Joe Biden during remarks on the U.S. Jobs Plan in 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 producers a victory for the US efforts to build a strong supply chain for electric vehicles to create jobs for clean energy and curb climate change.
The settlement of a trade secret dispute between LG Energy Solution and SK Innovation Co. will enable two plants in Georgia to proceed with plans to manufacture lithium-ion batteries for Ford and Volkswagen.
The companies have agreed to drop lawsuits in the US and South Korea and not pursue further lawsuits for a decade. SK Innovation will also pay LG Energy Solution $ 1.8 billion in cash and royalties.
The agreement took place before the Biden government deadline Sunday night to reverse a decision by the U.S. International Trade Commission unless the battery manufacturers reach a settlement.
The settlement is a major victory for the Biden government, which recently unveiled a comprehensive $ 174 billion infrastructure plan to boost the electric vehicle market and move away from gas-powered cars.
‘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. We can create well-paid work here at home and lay the foundation for tomorrow’s work, ‘Biden said in a statement.
The president’s proposal involves the installation of at least 500,000 charging stations across the country by 2030, incentives for Americans to buy motor vehicles and money to recharge factories and increase the domestic supply of materials.
Failure to resolve the dispute has cost thousands of jobs in Georgia and threatened the country’s EV 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 US to restrain the company from importing supplies to build batteries.
SK Innovation has 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 upheld. If no settlement was reached, Biden’s administration should have dominated the ITC to allow SK Innovation to build the plant.
“Today’s settlement is a positive step in that direction, which will provide workers in Georgia with welcome relief and a new opportunity for workers across the country,” Biden said.
Young Hyun Kim, CEO of LG Energy Solution, and Jun Kim, CEO of SK Innovation, said in a joint statement that the companies’ will compete in a friendly way, all for the future of the US and South Korean electric vehicle battery industries. “
“We are committed to working together to support the Biden Government’s climate agenda and to develop a robust US supply chain,” they said.