SK Inno "Invests 3 Trillion Won More"... Battery SOS to Biden

Plans to Invest an Additional $2.4 Billion by 2025
Plan to Create Over 3,400 Jobs... Possibility of Investment Review Due to ITC Final Ruling
Interpreted as Request for President Biden to Exercise 'Veto' Power

[Asia Economy Reporter Hwang Yoon-joo] SK Innovation has requested the White House to intervene in the final ruling by the U.S. International Trade Commission (ITC), which centers on the 'ban on electric vehicle battery imports.' This request was made to the U.S. Trade Representative (USTR), expressing concerns that the outcome of the battery dispute with LG Energy Solution could negatively impact SK Innovation's investment and job creation in Georgia, USA, totaling over 5 trillion won. Essentially, SK Innovation is asking U.S. President Joe Biden to exercise his veto power over the ITC decision. ▷Related article on page 4

According to industry sources and the Wall Street Journal (WSJ) on the 2nd, SK Innovation recently submitted a statement of opinion to the USTR, which has entered a 60-day review period for the presidential veto following the ITC's final ruling.

The ITC is an administrative agency, and its final ruling must be approved by the president to be confirmed. If President Biden exercises his veto over the ITC decision, it could nullify the final ruling. Currently, the USTR is in the process of gathering final opinions from both SK Innovation and LG Energy Solution, including the possibility of the president exercising the veto. It is also known that LG Energy Solution met with Biden administration officials last week to convey their position that the ITC decision should not be overturned.

The statement included SK Innovation's plan to invest an additional $2.4 billion by 2025 to expand its electric vehicle battery plant and create over 3,400 more jobs, in addition to the $2.6 billion already invested in its existing Georgia plants 1 and 2 (with a production capacity of 21.5 GWh). It also implied that the ITC's ruling, which ordered a 10-year ban on SK Innovation battery imports into the U.S. due to trade secret infringement, could lead to abandoning future investment plans.

Whether President Biden will exercise his veto remains uncertain, but it is clear that the administration has emerged as a wildcard in the battery dispute between the two companies. Depending on the U.S. administration's actions, there is a possibility that the compensation negotiations between the two parties, which currently have significant differences, could accelerate. Last week, President Biden signed an executive order reviewing supply chains for items such as semiconductors, batteries, and rare earths, which are at risk of supply disruptions.