WASHINGTON (AP) – Two major South Korean electric vehicle battery manufacturers have settled a long-running trade dispute that allows one of them to proceed with plans to manufacture batteries in Georgia, a person informed . President Joe Biden calls it “a victory for American workers and the American car industry.”
The person said on Saturday that LG Energy Solution and SK Innovation had reached the settlement and ended the need for Biden to intervene in the dispute. The person spoke on condition of anonymity because the companies did not announce the settlement. No details were available.
The US International Trade Commission ruled in February that SK had stolen 22 trade secrets from LG Energy and that SK should be banned from importing, manufacturing or selling batteries in the United States for 10 years.
The decision could lead Ford and Volkswagen to abandon batteries, as both have expanded additional models for electric vehicles. SK has contracts to make batteries for an electric Ford F-150 pickup and an electric Volkswagen SUV.
The commission said SK could supply batteries to Ford Motor Co. for four years. and Volkswagen AG for two years.
The decision jeopardized a $ 2.6 billion battery factory being built by SK in Commerce, Georgia.
Politicians have called on Biden to reject the commission’s decision. Biden had until Sunday night to make a decision.
Biden said in a statement on Sunday that the construction of electric vehicles and the batteries what is needed is an important part of its $ 2.3 billion infrastructure plan.
‘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, which can create well-paid jobs here at home and lay the foundation for the work. this morning. . “Today’s settlement is a positive step in that direction,” Biden said.
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Krisher reports from Detroit.