SOKOR BATTERY MAKERS CUT DEAL ON TRADE ROW IN U.S.

South Korean battery makers LG Chem and rival SK Innovation Co have agreed to settle a trade secrets dispute that has threatened a key Georgia plant and the electric vehicle (EV) plans of Ford Motor Co and Volkswagen AG, three sources briefed on the matter said, David Shepardson and Hyunjoo Jin reported for Reuters.

The Biden administration through the US Trade Representative’s Office (USTR) faced a Sunday night deadline on whether to take the rare step of reversing a US International Trade Commission decision unless the companies had agreed on a deal. An announcement of the battery makers’ settlement is expected soon, the sources said.

The agreement is a win for President Joe Biden who has made boosting electric vehicles and US battery production a top priority. The global auto industry is racing to develop EVs, and Biden has proposed spending $174 billion to hike EV sales and expand charging infrastructure.

The ITC in February sided with LG Chem after the company accused SK of misappropriating trade secrets related to EV battery technology and issued a 10-year-import ban, but it allowed SK to import components for batteries for Ford’s EV F-150 program for four years, and Volkswagen’s North American EVs for two years.

SK vowed to walk away from its $2.6 billion Georgia battery plant under construction if the ITC decision were not overturned. The ITC also faulted what it called SK’s “egregious misconduct” and SK’s destruction of documents ordered by company executives.

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