LG Energy Solution and SK Innovation have agreed to settle all legal disputes relating to EV batteries in the United States and Korea. As a result, all litigation between the companies, which began in April 2019, is resolved. In this agreement, the two companies agreed to the following terms.
SK Innovation will pay LG Energy Solution 2 trillion won (USD $1.8 billion) apportioned into lump-sum payments and a running royalty.
The companies agreed to withdraw all pending legal disputes in United States and Korea, and agreed to a ten-year non-assertion.
LG Energy Solution and SK Innovation have decided to settle to compete in an amicable way, all for the future of the US and South Korean electric vehicle battery industries. We are dedicated to work together to support the Biden Administration’s climate agenda and to develop a robust US supply chain.
We are grateful to the Korean and US governments and stakeholders involved for their efforts in making this settlement possible.—Jong Hyun Kim, CEO and President of LG Energy Solution and Jun Kim, CEO and President of SK Innovation
US President Joe Biden issued a statement on the resolution:
This settlement agreement is a win for American workers and the American auto industry. A key part of my plan to Build Back Better is to have the electric vehicles and batteries of the future built here in America, all across America, by American workers. We need a strong, diversified and resilient US-based electric vehicle battery supply chain … Today’s settlement is a positive step in that direction, which will bring some welcome relief to workers in Georgia and new opportunity for workers across the country.