The agreement between Korean batteries is a big lift for US EV manufacturers

The agreement between Korean batteries is a big lift for US EV manufacturers

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The agreement reached on Sunday between South Korean companies LG Energy Solution and SK Innovation will divide SK 2 trillion Korean dollars, or $ 1.8 billion, into one-off payments and a current bonus.

It could also pave the way for LG to announce a second joint venture. General Motors (GM). The two companies have admitted they want to build another facility, in addition to the one they are building in Lordstown, Ohio.

But there is an imminent shortage of batteries needed to power the cars. The lack of stock can put the price of the battery up, and keep the cost of motor vehicles higher than traditional petrol cars.

Even with its own battery factory in Nevada, leader of electric cars Tesla (TSLA) said he needs more batteries from suppliers, and also said that a lack of batteries is the reason it still has to come out with an electric semi-tractor truck, which needs five times as many batteries as a typical EV.
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The dispute between the battery manufacturers led to a decision by the US International Trade Commission that SK Innovation stole 22 trade secrets from LG Energy and that it should be banned from importing, manufacturing or selling batteries in the US market for 10 years. . But the commission did allow SK to continue to sell batteries Ford (F) for four years and VW (VLKPF) for two years to give the car manufacturers time to find other suppliers.

“We are pleased that SK Innovation and LG Energy Solution have rectified their differences,” Ford said. “It enables us to focus on delivering a range of Ford world-class electric battery vehicles to our retail and fleet customers, while also supporting U.S. workers, the economy and our common goal of protecting the planet.”

President Joe Biden had until Sunday night to defraud the Trade Commission’s decision. Georgia politicians, including newly elected Senator Jon Ossoff, have called for a reversal of the USITC decision.

“This settlement agreement is a victory for U.S. workers and the U.S. auto industry,” Biden said in a statement issued by the White House Sunday. ‘We need a strong, diversified and resilient U.S. electric vehicle battery supply chain so that we can meet the growing global demand for these vehicles and components. We can create well-paid jobs at home and lay the foundation for tomorrow’s work. . “

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