SK Innovation "Thanks to South Korean and U.S. Administrations, Accelerating Construction of Georgia Plant 2"

[Asia Economy Reporter Kim Hyewon] SK Innovation expressed gratitude to the South Korean and U.S. administrations for resolving the electric vehicle battery dispute with LG Energy Solution just one day before U.S. President Joe Biden's veto review deadline.

On the 11th, SK Innovation issued an additional statement regarding the conclusion of the battery dispute, stating, "SK Innovation thanks the South Korean and U.S. administrations and stakeholders who have worked to resolve the long-standing dispute."

SK Innovation especially expressed deep gratitude to "the residents of Georgia, Governor Brian Kemp, state government officials, the Georgia State Senate and House of Representatives, Jackson County, and the City of Commerce for their unwavering support under any circumstances."

SK Innovation further stated, "Regarding this dispute, we have developed a greater sense of responsibility toward the U.S. government's eco-friendly policies, the growth of Georgia's economy, and job creation," confirming plans to proceed with investments in the U.S. as scheduled.

SK Innovation explained, "With this agreement eliminating uncertainties about the operation and expansion of our U.S. battery business, we will accelerate the stable operation of Plant 1 in Georgia and the construction of Plant 2, and actively promote additional domestic and international investments to foster the development of the global electric vehicle industry and ecosystem."

Additionally, they added, "Above all, we have created an opportunity to respond actively to the unwavering trust and support of customers such as Ford and Volkswagen, who are set to begin full-scale production from 2022, and to develop into an even greater partnership going forward."

SK Innovation also stated that it will dedicate itself to strengthening ESG (Environmental, Social, and Governance) management and enhancing business and corporate value.

Earlier that day, SK Innovation and LG Energy Solution agreed to end the battery dispute ongoing at the U.S. International Trade Commission (ITC). Accordingly, the litigation process that began in April 2019 has been concluded.

Through this agreement, the two companies agreed that ▲ SK Innovation will pay LG Energy Solution a total of 2 trillion KRW in present value terms (1 trillion KRW in cash + 1 trillion KRW in royalties) according to the agreed method, and ▲ both parties will withdraw all related domestic and international litigations and refrain from any additional disputes for the next 10 years.

SK Innovation President Kim Jun and LG Energy Solution President Kim Jonghyun stated, "We have agreed to engage in healthy competition and friendly cooperation for the development of the electric vehicle battery industry in both South Korea and the U.S.," adding, "In particular, we will jointly strive to strengthen the battery supply chain and promote eco-friendly policies pursued by the Biden administration."