South Korean battery makers LG Energy Solution and SK Innovation Co agreed on Sunday to settle disputes over trade secrets dispute, avoiding a potential setback for US electric-vehicle (EV) ambitions.
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The settlement by affiliates of two of South Korea's biggest conglomerates comes hours before a Sunday deadline for the administration of US President Joe Biden to decide whether to take the rare step of reversing a US International Trade Commission decision (ITC).
SK Innovation agreed to pay LG Energy Solution, a wholly owned subsidiary of LG Chem Ltd, 2 trillion won ($1.8 billion) – 500 billion won each this year and next, and royalties for at least six years.
The companies agreed to drop all litigation in the United States and South Korea and not raise further lawsuits against each other for 10 years.
The core dispute had threatened the EV plans of Ford Motor Co and Volkswagen AG, as well as a Georgia plant that is key to the growing industry.
The resolution is a win for Biden, who has made boosting EVs and US battery production a top priority. The global auto industry is racing to develop EVs, and Biden has proposed spending $174 billion to hike their sales and expand charging infrastructure.
