LG Energy "Recognized for Intellectual Property"... SK Innovation "Uncertainty in US Market Resolved"

Jonghyun Kim, President of LG Energy Solution

[Asia Economy Reporter Hwang Yoon-joo] CEOs of LG Energy Solution and SK Innovation expressed their reflections on the battery dispute settlement and revealed their intentions to expand their battery businesses on the 12th.

According to LG Energy Solution, President Kim Jong-hyun stated in an internal message, "This settlement holds great significance as it justly recognizes the efforts and values of all employees who did not give up on challenge and innovation despite numerous difficulties and crises," adding, "It is also a major achievement that the battery intellectual property rights accumulated through over 30 years of investment have been acknowledged and are now legally protected."

President Kim explained, "Taking this lawsuit as an opportunity, the company will further develop its technological capabilities," and "Moreover, through bold and proactive investments, we will expand battery supply on a large scale and actively play a role in ensuring the successful spread of electric vehicles."

He emphasized, "Let us continue to cherish and protect our technological capabilities and intellectual property with pride, and accelerate securing future technologies to lead the global eco-friendly energy market."

Kim Jun, President and CEO of SK Innovation

Kim Jun, President of SK Innovation, also stated in an email sent to employees the day before, "This settlement has resolved uncertainties regarding the growth of the battery business and the U.S. market," adding, "We can now accelerate the construction of the Georgia plant in the United States."

President Kim said, "Aligned with the development of the global electric vehicle industry, we can actively pursue additional investments and expanded cooperation," and "Now that uncertainties have disappeared, let us show our resilience through greater growth with confidence in our technology and product competitiveness."

LG Energy Solution and SK Innovation reached a sudden agreement yesterday to end the electric vehicle battery dispute. The CEOs of both companies reportedly reached this agreement through a video conference last weekend, thanks to the active mediation of the U.S. government and the Office of the United States Trade Representative (USTR) just before the U.S. president’s veto deadline. According to this settlement, SK Innovation will pay a total compensation of 2 trillion KRW to LG Energy Solution, including 1 trillion KRW in cash and 1 trillion KRW in royalties.