SK Innovation Requests White House Intervention in Battery Dispute Ruling

LG Conveys Position That ITC Decision Cannot Be Reversed

Biden signing an administrative order to inspect supply chains including semiconductors and batteries
[Photo by Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] SK Innovation reportedly requested U.S. President Joe Biden to veto the ruling in the battery dispute with LG Energy Solution.

The Wall Street Journal (WSJ) reported on the 1st (local time) that SK Innovation submitted documents containing this request to the White House last week.

WSJ stated that the U.S. International Trade Commission (ITC), which issued a "10-year import ban in the U.S." on SK Innovation batteries due to trade secret infringement, argued that this decision could negatively impact the electric vehicle battery factory under construction in Georgia.

SK Innovation is investing about 3 trillion won in Georgia to build a factory capable of producing electric vehicle batteries for 430,000 units annually. The expected employment from this is 3,400 people.

WSJ reported that SK Innovation emphasized to the administration that by investing an additional $2.4 billion, 3,400 more jobs could be created by 2025.

SK Innovation is requesting President Biden to exercise his veto power over the ITC's decision. WSJ also reported that LG representatives met with Biden administration officials last week, expressing that the ITC's decision should not be overturned.

The ITC, which investigates and regulates unfair trade practices, ruled in favor of LG in a preliminary decision last February and reached the same conclusion in the final ruling, banning the import of SK Innovation batteries. However, it granted a grace period of 4 years and 2 years respectively for transactions with SK Innovation's customers Ford and Volkswagen.

Last week, President Biden signed an executive order reviewing supply chains for items such as semiconductors, batteries, and rare earth elements, which are at risk of supply disruptions.