LG, SK Settle Dispute Over Battery Tech, Paving the Way for New US Assembly Plant
COMMERCE, GA—SK Innovation, a manufacturer of batteries for electric vehicles, has settled a legal dispute with rival LG Energy Solution, enabling SK to proceed with plans to expand its manufacturing operation here.
SK Innovation is building two battery plants in Commerce as part of a $2.6 billion investment that will create more than 2,600 jobs by 2024. The first plant is scheduled to begin initial operation this year, with mass production beginning in 2022. A second plant at the same site is expected to begin mass production in 2023. Some 250 people already work at the complex.
However, the project stalled after LG Energy filed suit with the International Trade Commission, alleging that SK Innovation had stolen its technology. In February, the trade commission ruled against SK Innovation and blocked the importation, domestic production, and sale of SK Innovation batteries for electric vehicles that rely on LG Energy Solution’s trade secrets.
On April 10, the two companies settled the dispute, with SK Innovation agreeing to pay LG Energy $1.8 billion.
When both facilities are complete, SK innovation will have the capacity to produce enough batteries to power 310,000 electric vehicles per year. Volkswagen, Mercedes-Benz, Hyundai-Kia Motors and Ford Motor Co. are among the automakers that use SK’s batteries.
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