It is reported that members of the House of Representatives from Georgia and Tennessee sent letters to LG Energy Solution and SK Innovation, which are involved in a trade secret infringement lawsuit regarding electric vehicle battery, urging them to come to an agreement. SK Innovation’s electric vehicle battery plant and Volkswagen’s electric vehicle plant are located in Georgia and Tennessee respectively.
According to the industry on December 13, Buddy Carter (Republican) and Sanford Bishop (Democrat) serving as the U.S. Representatives for Georgia and Chuck Fleischmann (Republican) serving as the U.S. Representative for Tennessee sent letters to LG Energy Solution and SK Innovation on December 10 in the U.S. time.
“Both of you have made great contributions towards a growth of the U.S. economy, creation of high-paying jobs, and eco-friendliness.” said on the letters sent by the three members to Vice Chairman Shin Hak-Cheol of LG Chem and President Kim Jun of SK Innovation. “If one company receives an unfavorable decision by the United States International Trade Commission (ITC), it will have negative impact on the U.S. economy and public interest.”
While mentioning SK Innovation’s investment in its Georgia plant and Volkswagen’s investment in electric vehicles specifically, they pointed out that an unfavorable decision for SK Innovation will have huge impact not only on American consumers who are looking to purchase electric vehicles, but also American workers related to various supply chains. They also respectfully urged the two companies to find a feasible, friendly, and responsible solution considering their impact on the American economy.
On the other hand, GM that established a joint venture with LG Energy Solution and Governor Mike DeWine of Ohio submitted their statement saying that LG’s investment that can potentially create more than thousand jobs in the U.S. could shrink if SK Innovation does not rectify its unfair trade that infringed LG’s intellectual property rights.
Meanwhile, the ITC decided to postpone a final ruling on the case between the two companies to February 10. Back in February, the commission made a default judgment indicating an early defeat for SK Innovation. SK Innovation objected the default judgment, and the commission has been looking into its preliminary ruling after accepting the SK Innovation’s objection.
If the preliminary ruling stands, SK will not be able to supply battery cells and battery materials and operate its plant in Georgia. The battle between LG Energy Solution and SK Innovation is taking a new shape of a battle between states and auto makers that are heavily related to the two companies.
Staff Reporter Kim, Jiwoong | email@example.com