Ford’s plans for the F-150 electric pickup and Volkswagen’s plans for the VW ID.4 are in jeopardy as their battery supplier faces an import ban on intellectual property issues.
LG versus SK innovation
In 2019, LG Chem, one of the best battery suppliers for electric vehicles, filed federal lawsuits against SK Innovation (SKI), another leading battery supplier for electric vehicles, over the stolen trade secrets.
In the charges, LG claims that SK Innovation obtained ‘trade secrets’ by employing 77 employees in their lithium-ion battery division of LG Chem, which they say’ developed the world’s first commercial pocket-type Li-ion battery for cars . ‘
They allege that some of the employees stole some trade secrets before leaving for SK Innovation:
These employees include dozens of engineers involved in the research and development, manufacturing and assembly, and testing of quality assurance of Li-ion batteries, including the latest and most advanced generation battery technology. The lawsuits allege that a significant number of these employees are engaged in the theft of LG Chem’s trade secrets in favor of SK Innovation in the development and manufacture of pouch Li-ion batteries, of which LG Chem is the world’s leading supplier.
LG Chem claims that it has evidence of the employees who conspired with SK Innovation.
The company has filed similar lawsuits against SKI in Korea, as both companies are based in South Korea, and they have won in the Supreme Court.
They are asking for compelling relief to deter SKI from importing its battery cells and modules into the US.
LG won and SKI is not the only one to lose
The International Trade Commission has now ruled on the matter and banned SKI from importing its batteries into the US.
But, Bloomberg reports that a few years before the ban was introduced, the ITC, Ford and VW, which relied on SKI’s batteries for some upcoming electric vehicle programs in the US, stated:
SK Innovation could import components starting four years for domestic battery production for Ford’s EV F-150 to be launched next year, and for Volkswagen’s US MEB range for two years to give car manufacturers time to move to new local suppliers, ordered the International Trade Commission.
Ford has warned the commission that it is not easy to change the battery supplier, but the carmaker looks happy with the four-year delay in the ban:
This ITC decision supports our plans to launch the fully electric Ford F-150 mid-2022. This is an important part of our plan to lead the revolution for electric vehicles and is a top priority for the company.
Ford has previously confirmed that it wants to launch a fully electric version of the F-150 pickup in 2022.
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