Expectations for Boosting Domestic Battery Industry and Electric Vehicle Development
USTR Representative in 2nd Week of Tenure Also Consults with Korean Officials
[Asia Economy New York=Correspondent Baek Jong-min] The battery dispute settlement between LG Energy Solution and SK Innovation has been unanimously welcomed not only by the political and administrative circles in the United States but also by Volkswagen, which has a supply contract with SK. It is positively evaluated as a resolution of a difficult issue that could have been an obstacle to the domestic battery industry and the development of electric vehicles.
According to the Associated Press on the 11th (local time), politicians in Georgia, where SK's electric vehicle battery plant is located, welcomed the agreement regardless of their party affiliation.
Governor Brian Kemp described the agreement as fantastic news in a statement. Governor Kemp, a Republican, said, "I want to extend special thanks to the local leadership of Jackson County and the city of Commerce, our amazing partners in Seoul and here, the Korean government, and the U.S. Trade Representative (USTR) who supported the negotiation process between the two companies."
Governor Kemp has demanded that U.S. President Joe Biden veto the decision by the U.S. International Trade Commission (ITC), which decided to ban SK battery imports several times, saying that 2,600 jobs would be lost due to this battery dispute.
Democratic Senator Jon Ossoff of Georgia also issued a statement expressing gratitude that SK and LG communicated with him daily last week and resolved the crisis that threatened jobs in Georgia. Senator Raphael Warnock, also a Democrat, said, "I am pleased with the hoped-for decision," adding that the agreement will help regional economic development.
Earlier, President Biden also issued a statement welcoming the agreement as "a victory for American workers and the automotive industry."
The Washington Post described the agreement as a victory for President Biden, noting that although the U.S. government intervened in the settlement, it was reached without the president exercising his veto power on the surface.
This means that President Biden faced no political risk between job creation and responding to climate change.
U.S. Trade Representative Katherine Tai also welcomed the agreement in a statement released that day, saying, "We have been able to lead innovation and growth in clean energy technologies included in the Biden administration's infrastructure investment plan while maintaining respect for technological innovation, which is at the core of trade and manufacturing policy."
The Washington Post reported that Representative Tai, who took office two weeks ago, consulted with Korean government officials about this agreement. It was confirmed that the battery dispute was the most important issue she handled as her first task after taking office.
Volkswagen, which was expected to be hit by the SK battery import ban, also welcomed the agreement. Scott Koff, President of Volkswagen America, said, "With the resolution of intellectual property issues between LG and SK, we will fully commit to producing the electric vehicle ID.4 SUV in the United States."
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