Battery Dispute, LG Says "Stop Technology and Talent Theft"... SK Responds "Regrettable but Glad for Grace Period"

[Asia Economy Reporter Choi Dae-yeol] The U.S. International Trade Commission (ITC) ruled in favor of LG in the trade secret infringement dispute between LG and SK. LG Energy Solution (formerly LG Chem’s battery division) praised the decision, stating that it has put a stop to technology theft practices and allows for proper protection of intellectual property rights. SK Innovation expressed regret over the ruling but welcomed the fact that it now has a path to supply to local U.S. automakers.

On the 10th (local time), the ITC finalized the list of trade secrets related to secondary batteries that LG had claimed in the trade secret infringement lawsuit between LG and SK. Since SK violated U.S. laws regarding battery cells, modules, and component materials, the ITC issued a 10-year import ban. However, some quantities scheduled for delivery to Ford and Volkswagen were allowed with a time limit, and some batteries for Kia electric vehicles currently on sale were permitted for import.

Following the ruling, LG Energy Solution stated, "This ITC decision acknowledges LG Energy Solution’s claim that SK Innovation unlawfully used LG Energy Solution’s secondary battery-related trade secrets across a wide range of areas including research and development, production, testing, orders, and marketing, causing economic damage."

They added, "It is significant that intellectual property, built over more than 30 years with investments worth tens of trillions of won, is now legally and rightfully protected. This ruling has highlighted the importance of trade secrets as well as patents in the battery industry, and it will put a stop to potential future cases of personnel and technology theft, ensuring that the technological capabilities of domestic battery companies are protected and recognized."

On the other hand, SK Innovation expressed regret, evaluating that the decision failed to properly clarify the key issue of trade secret infringement in the lawsuit.

SK Innovation said, "It is fortunate that a grace period was granted to allow battery supply to Ford and Volkswagen. We will focus on conveying through the remaining procedures that there will be no disruption to local battery production, that the high-quality, safe batteries and the Georgia plant in the U.S. will play a key role in the eco-friendly automobile industry, and that thousands of jobs will be created."