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

This 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."

News related to SK Innovation, LG or Ford

In its April 2022 sales report, Ford noted that its EV sales have increased by 139% YoY thanks to the Mustang Mach-E and the E-Transit. E-Transit sales increased 62.3 percent over March, while the Mustang Mach-E had its best monthly sales performance since it was launched, with sales up 95 percent over last year. At the same time, the first shipments of all models of the all-new F-150 Lightning are underway. "While...

5 May 2022

Ford announced that F-150 Lightning customers will benefit from more power and capability than they expected from their trucks. F-150 Lightning, the only full-size electric pickup available now with a starting price of less than $40,000, will begin to ship to customers in the coming days, starting with the Pro Series, as Ford establishes itself as a leader in the electric vehicle revolution. Lightning is the...

3 May 2022

The Lincoln Star concept is a fully electric SUV that previews what's to come from the brand in the near future. Lincoln targets an all-electric production with plans to launch three new EVs by 2025 and another one - in 2026. The concept vehicle has several noteworthy features. Lights are a big thing and Lincoln uses them in multiple ways on the inside and outside. In the front where a standard grille should be...

21 April 2022

LG Magna e-Powertrain, a joint venture between LG Electronics and Magna International Inc., celebrated the groundbreaking of its new plant in Ramos Arizpe, Mexico. Scheduled for completion in 2023, the new facility will produce inverters, motors, and onboard chargers to support General Motors’ new electric vehicle (EV) platform. The 260,000 square foot plant will be LG Magna e-Powertrain’s first production base in...

20 April 2022

With the increasing shift toward vehicle electrification, Magna is leveraging its market-leading body and chassis expertise to provide innovative battery enclosures. The company announced today that it is expanding its operations into Chatham, as an extension of its current operations in St. Thomas to support new business from Ford Motor Company. The new 170,000 square foot facility is expected to create up to 150...

1 April 2022

Whether hauling snowmobiles to the cabin in the dead of winter or the pontoon to the lake in the dogdays of summer, the 2022 Ford F-150 Lightning is tested to have customers covered. To help prove it, Ford engineers took the first all-electric F-Series to two of America's toughest real-world towing routes during development – Davis Dam in the summer and TFLTruck’s Ike Gauntlet in the winter. Last month, Ford...

24 March 2022

LG Energy Solution will invest USD 1.7 billion in expanding its Holland, Michigan site. This will quintuple the plant’s capacity to help produce battery components into the future as Michigan’s electric vehicle industry grows and will create 1,200 jobs. The LGES expansion announcement comes just two months after GM announced its historic $7 billion investment in the state, which includes up to $2.5 billion to build...

24 March 2022

Stellantis N.V. and LG Energy Solution (LGES) today announced they have executed binding, definitive agreements to establish the first large-scale, domestic, electric-vehicle battery manufacturing facility in Canada. The joint venture company will produce leading edge lithium-ion battery cells and modules to meet a significant portion of Stellantis’ vehicle production requirements in North America. The joint venture...

24 March 2022

In Ford's efforts to continuously improve over time, some F-150 Lightning customers will benefit from an increase in range ahead of launch this spring. The all-new, all-electric F-150 Lightning has completed final EPA testing. F-150 Lightning XLT and Lariat trims with the extended range battery take you an EPA-estimated range of 320 miles while the F-150 Lightning Platinum has an EPA-estimated range of 300 miles...

22 March 2022

Following the announcement of the formation of the Ford Volkswagen Alliance for expanding cooperation on the MEB platform for EVs, Ford has also announced its bold plan for the brand's electric future in Europe. Ford will launch 7 new connected EVs and vans that will support plans to sell 600K+ EVs annually on the Old Continent by 2026. The acceleration in Europe supports Ford's goal to sell more than 2 million EVs...

14 March 2022

Ford Motor Company and the Volkswagen Group are expanding their e-mobility partnership. Ford plans to produce another electric model for the European market based on the MEB platform. The automaker will also double its planned MEB volume to 1.2 million units over a six-year timeframe. The agreement was signed as part of the strategic alliance between Volkswagen and Ford, which includes e-mobility, commercial...

14 March 2022

SK On and Ford Motor have signed a MoU for establishing a JV for battery production in Turkey working together with Koç Holding. Founded in 1926, Turkey's Koç Holding is the only Turkish company to be listed on the Fortune Global 500, representing this country. In 1959, they established Ford Otosan together with Ford and are producing commercial vehicles (for business, such as vans, etc.) in the Cocaeli area, with...

14 March 2022

LG Energy Solution and CAMX Power announce that LGES has obtained a license under the intellectual property of CAMX relating to the GEMX platform of nickel-based high-energy high-power cathode materials for use in lithium-ion batteries, especially for electric vehicles (EVs). The GEMX platform is based on fundamental inventions of CAMX for which key patents have been granted globally including the US, EU, Korea...

7 March 2022

This winter, Ford engineers spent two weeks in the heart of Alaska in minus 30-degree temperatures to continue fine-tuning the F-150 Lightning pickup’s performance on low-traction surfaces like snow and ice, and in extreme cold to give customers maximum confidence. "Alaska provides us the extremely cold temperatures, snow and ice-covered surfaces that we need to push the F-150 Lightning in this type of testing...

3 March 2022