Gov. Brian Kemp and his economic team are ecstatic that Korean companies LG Energy Solution and SK Innovation yesterday agreed to end their trade secret dispute and all litigation relating to electric vehicle batteries in the United States.
“Our state attracted this massive $2.6 billion investment because of Georgia’s pro-growth leadership,” Kemp said, “and I have personally participated in countless meetings, calls, and other conversations to make sure this project and the 2,600 expected jobs continued to move forward. I want to offer a special thank you to local leadership in Jackson County and the city of Commerce, our incredible partners with the government of South Korea both here and in Seoul, as well as the Office of the United States Trade Representative for assisting the two companies through the settlement negotiations process.”
In this agreement, the two companies agreed to the following terms:
- SK Innovation will pay LG Energy Solution$1.8 billion apportioned into lump sum payments and a running royalty.
- The companies agreed to withdraw all pending legal disputes.
“LG Energy Solution and SK Innovation have decided to settle to compete in an amicable way, all for the future of the U.S. and South Korean electric vehicle battery industries,” said Jong Hyun Kim, CEO and President of LG Energy Solution and Jun Kim, CEO and President of SK Innovation. “We are grateful to the Korean and U.S. governments and stakeholders involved for their efforts in making this settlement possible.”
The agreement will help provide a stable battery supply chain for important partners, including Ford and Volkswagen, and it allows SK Innovation to operate its Georgia plant undisrupted.
“As a global pioneer in the industry, LG Energy Solution will continue to make bold investments that align with President Biden’s environmental policies. The company intends to play an important role in ensuring a successful large-scale expansion of battery supplies and electric vehicles. To make this possible, the company will further accelerate its investment efforts including investing over $4.5 billion in its own U.S. business by 2025. LG Energy Solution is close to finalizing its second joint venture plant with GM,” LG Energy’s CEO said.
