WASHINGTON (AP) – Two major South Korean electric vehicle battery makers said Sunday they have settled a long-running trade dispute that will allow a company to move forward with plans to make batteries in Georgia. President Joe Biden called it “a victory for American workers and the American auto industry.”
The agreement between LG Energy Solution and SK Innovation put an end to the need for Biden to intervene in a closely monitored case for its implications for Biden’s clean energy agenda, which includes a sharp increase in the number of electric vehicles as part of its business plan. addressing climate change. . Biden had until Sunday evening to make a decision, following a February decision by a trade commission.
The companies said in a joint statement that SK will provide LG Energy with a total of $ 1.8 billion and an undisclosed royalty. They agreed to withdraw all pending trade disputes in the United States and South Korea and not to make new claims for 10 years.
“We have decided to establish ourselves and compete amicably, all for the future of the electric vehicle battery industries in the US and South Korea,” said Jun Kim, CEO and President of SK, and Jong Hyun Kim, CEO and President of LG Energy.
The companies are committed to working together to strengthen the US EV battery supply chain and to support the Biden administration’s efforts to advance clean energy policies, including electric vehicles.
The International Trade Commission ruled in February that SK had stolen 22 trade secrets from LG Energy and that SK should be able to import, manufacture or sell batteries in the United States for 10 years.
The decision could have left Ford and Volkswagen looking for batteries, as both are launching additional electric vehicle models, a priority for companies and the Biden administration. SK has contracts for the manufacture of batteries for a Ford F-150 electric pickup and a Volkswagen electric SUV.
The commission said SK could supply batteries to Ford Motor Co. for four years and to Volkswagen AG for two years. The decision endangered a $ 2.6 billion battery plant that SK is building in Commerce, Georgia.
Democratic Sen. Jon Ossoff of Georgia, who at Biden’s request initiated negotiations between two companies, said the settlement “saved the battery factory in Commerce, Georgia, providing thousands of jobs, billions of future investments and that Georgia will be a leader in the production of batteries for electric vehicles for the coming years. ”
US Trade Representative Katherine Tai said the agreement “increases confidence” in the reliability and accountability of the two companies as suppliers to the US auto industry. The agreement puts the US “in a stronger position to drive innovation and … clean energy technology while respecting the rights of technology innovators at the heart of trade and manufacturing policy,” Tai said.
Sen. Raphael Warnock, D-Ga, added: “The best way to protect trade workers – and the jobs that Georgians have been promised – is for the companies involved to negotiate a solution in good faith.” He said he raised the issue of battery with Biden during the president’s visit to Atlanta on March 19.
Biden said in a statement that the construction of electric vehicles and batteries necessary for them is an important part of its $ 2.3 trillion infrastructure plan.
“We need a strong, diversified and resilient US electric vehicle battery supply chain so that we can supply the growing global demand for these vehicles and components – creating well-paid jobs here at home and laying the groundwork for jobs. work tomorrow. Today’s settlement is a positive step in this direction, “said Biden.
Governor Brian Kemp, R-Ga., Called the settlement “fantastic news for northeast Georgia and the growing electric vehicle industry in our state.”
In a statement, Ford said the agreement “allows us to focus on delivering a range of world-class battery-powered electric vehicles to our retail and fleet customers, while supporting American workers, our economy and our common goal of protect the planet. “
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Krisher reported from Detroit.