SK "Efforts to Talk with LG... Agreement Possible as Early as Q1"

Early Defeat in Battery Lawsuit Leads to Settlement Strategy

Minimizing Business Risks and Focusing on Global Competition

LG Chem "Ready to Engage in Dialogue Anytime"

[Asia Economy Reporter Park So-yeon] SK Innovation, facing increased risks after an early defeat decision in the electric vehicle battery lawsuit in the U.S., has set a strategy to conclude the litigation through a settlement as early as the first quarter. This aims to promptly end the exhausting lawsuit between domestic companies in the fiercely competitive electric vehicle battery market among major corporations from Korea, China, and Japan, and focus on global competition.

An SK Group official stated on the 17th, "We are conducting behind-the-scenes talks with LG Chem regarding the trade secret infringement lawsuit over electric vehicle batteries and expect to reach a settlement as early as the first quarter." Related article on page 12

Right after reports emerged that the U.S. International Trade Commission (ITC) made a preliminary ruling of early defeat against SK Innovation in the battery lawsuit with LG Chem, LG Chem sent a gesture of reconciliation, saying, "LG Chem is a competitor in good faith but also a partner that must cooperate for the development of the industrial ecosystem." This reflects the same context. Apart from the legal procedures through objections proceeding as scheduled, behind-the-scenes negotiations are being conducted simultaneously to minimize risks in the battery business.

LG Chem views this early defeat decision as the 'ball' in the battery war passing to SK's side. LG Chem's position is that they are willing to engage in dialogue anytime if SK Innovation shows sincere apology, promises to prevent recurrence, and discusses compensation measures accordingly.

An LG Chem official said, "We will continue to actively and sincerely participate in the remaining litigation procedures, and the door to dialogue remains open." There is a possibility that both sides may successfully conclude the legal process through a dramatic settlement. Industry insiders believe that the settlement may proceed through methods such as SK Innovation purchasing LG Chem’s patents.

Meanwhile, on the 14th (local time), the ITC issued an early defeat ruling against SK Innovation regarding the battery lawsuit with LG Chem. The specific grounds for this decision will be disclosed later. Accordingly, without procedures such as hearings scheduled for early March, only the ITC’s final decision by October 5 remains.