LG Vitality Resolution and SK Innovation attain settlement to finish USITC commerce secret dispute and litigation

WASHINGTON–(BUSINESS WIRE) – LG Energy Solution and SK Innovation announced on April 11 (Korean time) that they have agreed to resolve all litigation related to EV batteries in the United States and Korea.

As a result, all legal disputes between the companies that started in April 2019 will be resolved. In this agreement, the two companies have agreed the following terms.

• SK Innovation pays LG Energy Solution 2 trillion won ($ 1.8 billion), divided into lump sums and an ongoing license fee.

• The companies agreed to withdraw all pending litigation in the US and Korea, and agreed to a decade of inactivity.

“LG Energy Solution and SK Innovation have decided to mutually choose the future of the US and South Korean electric vehicle battery industries,” said Jong Hyun Kim, CEO and President of LG Energy Solution, and Jun Kim. CEO and President of SK Innovation. “We are determined to work together to support the Biden government’s climate change agenda and build a resilient US supply chain.”

The two CEOs added, “We thank the Korean and US governments and all stakeholders involved for their efforts to make this settlement possible.”

Official statement from LG Energy Solution

Jong Hyun Kim stated, “This agreement demonstrates LG Energy Solution’s willingness to protect and maintain a fair and competitive climate in the EV industry. This agreement also reinforces the importance of our intellectual property acquired over the past 30 years.”

He also stated, “LG Energy Solution is grateful to the US government and stakeholders for their efforts to make this settlement possible. The agreement will help provide key partners including Ford and Volkswagen with a stable battery supply chain while also providing SK Innovation The agreement enables the two companies to coexist peacefully on the world market and to compete in good faith with one another. ”

Kim added, “As a global pioneer in the industry, LG Energy Solution will continue to make bold investments that are in line with President Biden’s environmental policy. The company intends to play an important role in the successful large-scale expansion of battery supply and electric vehicles. To make this possible, the company will continue to accelerate its investment efforts, investing over $ 4.5 billion in its own U.S. operations by 2025. LG Energy Solution is about to complete its second joint venture plant with GM. ”