SK Innovation and LG Energy Solution reach an agreement to close the ITC matter and all global and domestic litigation

12 April 2021, 06:08:51

SK Innovation and LG Energy Solution reach an agreement to close the ITC matter and all global and domestic litigationThis morning, SK Innovation announced that it has reached an agreement with LG Energy Solution to settle the U.S. ITC battery dispute on April 11th (KST). Under this agreement, all on-going litigation, including the ITC matter starting from April 2019, will be closed.

The two companies agreed that SK Innovation will provide LG Energy Solution a total of 2 trillion won (USD $1.8 billion) apportioned into lump-sum payments, and a running royalty. Further, they have agreed to withdraw all pending disputes in the United States and Korea, and not assert new claims for the next ten years.

"We have decided to settle and to compete in an amicable way, all for the future of the U.S. and South Korean electric vehicle battery industries,” said Jun Kim, CEO and President of SK Innovation, and Jong Hyun Kim, CEO and President of LG Energy Solution. “In particular, we will work together to strengthen an EV battery domestic supply chain and support the U.S. Biden Administration's effort to advance green energy policies and environmental responsibility."

"Lastly, we sincerely appreciate the Korean and U.S. government officials for their great efforts to reach an agreement," they added.

SK Innovation's statement:

"SK Innovation is grateful to the Korean and U.S. administrations and stakeholders for their efforts to resolve the battery dispute. We would like to express our deepest gratitude to Georgia residents, Governor Brian Kemp, Senators Warnock and Ossoff, the Georgia congressional leadership including Georgia’s state Senate and House of Representatives, as well as Jackson County and the city of Commerce for their steadfast support.

SK Innovation has made an important decision to move forward to lead the market based on our unique technological competitiveness in the fast-growing electric vehicle and electric vehicle battery industries. We are committed to the green policies and environmental responsibility pursued by the Biden Administration, as well as to the growth of the Georgia economy and job creation.

First and foremost, we are pleased to continue and further strengthen an on-going partnership with our customers including Ford and Volkswagen. We look forward to working with our customers, and once again thank them for their unwavering support.

As the agreement eliminates uncertainty about the operation and expansion of the U.S. battery business, SK Innovation plans to accelerate the stable operation of Plant 1 and construction of Plant 2 in Georgia. Also, in addition to our U.S. investments, SK Innovation plans to invest worldwide to reinforce the global electric vehicle industry.

SK Innovation will continue emphasizing ESG principles, and we look forward making a positive contribution to the local community."

Ford commented as follows:

"We are pleased that SK Innovation and LG Energy Solution have settled their differences. This allows us to focus on delivering a range of Ford world-class battery electric vehicles for our retail and fleet customers, while also supporting American workers, the economy and our shared goal of protecting the planet."

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