SK INNOVATION LOSES TO LG CHEM IN U.S. BATTERY CASE

The US International Trade Commission (ITC) sided with South Korea’s chemicals and electric vehicle (EV) battery maker LG Chem Ltd, which accused its cross-town rival SK Innovation Co Ltd of misappropriating trade secrets related to EV battery technology.

The ITC said it was issuing a limited 10-year exclusion order prohibiting imports into the United States of some lithium-ion batteries by SK Innovation, but would permit SK to import components for domestic production of lithium ion batteries and other parts for Ford Motor Co’s EV F-150 program for four years, and for Volkswagen of America’s MEB electric vehicle line for the North America region for two years, David Shepardson and Heekyong Yang reported for Reuters.

The ITC added that SK Innovation can replace or repair its batteries in Kia vehicles sold to U.S. consumers. The move could effectively ban the company from supplying EV batteries in the United States unless the company can source all the needed materials there - a step analysts say is not feasible.

The ITC said the decision would allow the automakers to transition to new suppliers for these programs. LG Chem’s wholly owned battery subsidiary LG Energy Solution, a EV battery supplier to Tesla Inc and General Motors Co, praised the ruling.

“SKI’s total disregard of our warnings and intellectual property rights gave us no choice but to file this case,” Kim Jong-hyun, the CEO of LG Energy Solution, said in a statement. He said the company would “further strengthen the protection of intellectual property rights going forward.”

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