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South Korean battery maker agrees to trade just before biden’s EV policy boost

The Biden administration through the Office of the United States Trade Representative (USTR) faced a deadline on Sunday night as to whether to take the rare step of overturning the decision of the Office of the United States Trade Representative unless the two companies agree.


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Biden has proposed spending $ 174 billion to increase EV sales and expand its charging infrastructure.

Korean battery maker LG Chem and rival SK Innovation have agreed to resolve a corporate secret dispute threatening a major Georgia plant and Ford Motor Company’s electric vehicle program with Volkswagen AG. Sources reported.

The Biden administration through the Office of the United States Trade Representative (USTR) faced a deadline on Sunday night as to whether to take the rare step of overturning the decision of the Office of the United States Trade Representative unless the two companies agree. The announcement of the battery maker’s settlement is scheduled for Sunday, sources said.

Read again: US President Joe Biden Faces Significant Trials on EV Battery Trade Disputes

The deal is a victory for President Joe Biden, who has made electric vehicle upgrades and US battery production a top priority. The global automotive industry is competing for EV development, and Biden is proposing to spend $ 174 billion to increase EV sales and expand its charging infrastructure.

The agreement put an end to a two-year fierce debate between two of South Korea’s largest conglomerate affiliates. LG accused SK of poaching nearly 80 employees and stealing corporate secrets after losing to SK to win Volkswagen’s order.

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LG first filed a complaint against SK in 2019, and both sides hired a number of lawyers and consultants to file a proceeding against the Biden administration.

In February, the ITC endorsed LG Chem after accusing SK of misusing corporate secrets related to EV battery technology and announcing a 10-year import ban, but SK for Ford’s EVF-150 program. We were able to import four battery components. A few years, and Volkswagen’s North American EV is two years.

SK has vowed to leave the $ 2.6 billion Georgia battery plant under construction if the ITC’s decision is not overturned.

The ITC also made mistakes in what was called SK’s “terrible illegal activity” and in SK’s destruction of documents ordered by company executives.

Ford, VW, LG and SK declined to comment.

Volkswagen of America CEO Scott Keough wrote in a LinkedIn post Wednesday that if the ITC decision were left untouched, it could “reduce US battery capacity and delay the transition to electric vehicles.” I will.

LG first filed a complaint against SK in 2019, and both sides hired a number of lawyers and consultants to file a proceeding against the Biden administration.

According to sources, the government is urging two companies to try to reach a settlement, as Volkswagen and Ford do.

U.S. Trade Representative Katherine Tai was personally involved in the settlement debate and called on both companies to make a resolution, sources said. The USTR declined to comment.

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The deal is a victory for President Joe Biden, who has made electric vehicle upgrades and US battery production a top priority.

In March, Reuters received proposed terms from LG, including monetary damages to address LG’s allegations of misappropriation of corporate secrets, Reuters reported earlier, citing a person familiar with the situation.

Georgia has two newly elected Democratic senators, Raphael Warnock and John Osov. These were the cornerstones of Biden’s slim parliamentary majority and talked about the importance of securing the future of Georgia factories.

Both senators repeatedly pressured the two companies to reach an agreement. “It will help keep the local economy moving forward,” Warnock said in a statement on Saturday, praising the reported deals that ensured the survival of the Georgia plant.

Last month, Georgia’s Republican Governor Brian Kemp urged Biden to intervene, saying the SK factory employs about 2,600 people and is the largest foreign investment in state history.

LG Energy Solutions, LG’s battery unit, is nearing completion of its Ohio cell production plant with General Motors and is likely to announce plans to build a $ 2.3 billion second facility in Tennessee, sources said. Told Reuters.

LG said it could meet automakers’ battery demand if SK abandoned its Georgia plant.

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SK said LG couldn’t handle VW and Ford’s contract and Chinese manufacturers could intervene to meet demand.

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South Korean battery maker agrees to trade just before biden’s EV policy boost

Source link South Korean battery maker agrees to trade just before biden’s EV policy boost

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