April 13, 2021

（Photo from Internet）

LG Energy Solution and SK Innovation have resolved a multibillion dollar trade secrets dispute over electric vehicle (EV) batteries, sidestepping a USITC decision that would have barred SK from importing its batteries into the US.

In a joint statement from the two South Korean companies, LG and SK announced they will be dropping all litigation and have signed a non-assertion agreement covering the US or South Korea for the next ten years.

As part of the agreement, SK will pay LG ₩2 trillion ($1.8 billion), comprising several lump-sum payments as well as running royalty fees.

"LG Energy Solution and SK Innovation have decided to settle to compete in an amicable way, all for 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.

The decision handed down from the US International Trade Commission (USITC) in February, ruled that SK Innovation had violated key LG battery patents and hit SK with a ten-year import ban on its batteries into the US.

This decision would have severely disrupted business for automakers planning to build vehicles in the US—including Ford and Volkswagen—who had struck deals with SK to supply EV batteries.

Source: World IP Review

The Origional Link: https://www.worldipreview.com/news/lg-and-sk-settle-ev-battery-dispute-21262