[Asia Economy Reporter Yuri Kim] Automobile manufacturer Volkswagen (VW) has requested the U.S. government to allow the use of electric vehicle batteries produced by SK Innovation for at least four years.
According to major foreign media, Volkswagen stated in a press release on the 12th (local time) that "we have suffered unintended damage due to the dispute between two Korean battery suppliers (SK Innovation and LG Energy Solution)" and expressed this position.
Volkswagen anticipated that the operation of its electric vehicle production line in the U.S. would be disrupted due to SK Innovation's loss in the dispute. Earlier, on the 10th, the U.S. International Trade Commission (ITC) ruled in the dispute between the two battery companies, recognizing SK Innovation's trade secret infringement and siding with LG Energy Solution.
The ITC issued an order to block the import of batteries and components found to infringe trade secrets by SK Innovation into the U.S. for 10 years and prohibited their distribution and sale within the U.S. for 10 years for items already imported. However, the ITC allowed SK Innovation to import batteries necessary for Volkswagen's electric vehicle production line in the U.S. for two years.
SK Innovation is currently constructing plants 1 and 2 in Georgia, U.S., with an investment of about 3 trillion won, capable of producing electric vehicle batteries for 430,000 units annually (21.5 GWh). Plant 1 has completed construction and is preparing for prototype production. Starting next year, it will supply batteries for 200,000 units annually to be installed on Volkswagen's electric vehicle platform (MEB). This corresponds to the entire volume of electric vehicles Volkswagen plans to sell in the North American market.
The Governor of Georgia requested U.S. President Joe Biden on the 12th to overturn the ITC's ruling. Governor Brian Kemp issued a statement urging the use of veto power, warning that the decision could negatively impact the construction of SK Innovation's electric vehicle battery plant underway in Georgia. Jim Farley, CEO of U.S. automaker Ford, also tweeted on the 11th, stating, "An agreement between the two battery suppliers will ultimately be in the best interest of U.S. (electric vehicle) manufacturers and workers," calling for a settlement.
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