London Daily

Focus on the big picture.
Monday, Mar 23, 2026

S.Korean battery makers agree $1.8 billion settlement, aiding Biden's EV push

S.Korean battery makers agree $1.8 billion settlement, aiding Biden's EV push

South Korean battery makers LG Energy Solution and SK Innovation Co agreed on Sunday to settle disputes over electric-vehicle (EV) battery technology, avoiding a potential setback for U.S. EV ambitions.

The settlement after marathon talks by affiliates of two of South Korea’s biggest conglomerates was announced just hours before a Sunday night deadline for President Joe Biden’s administration to decide whether to take the rare step of reversing a U.S. International Trade Commission decision (ITC).

In a statement, Biden called the settlement “a win for American workers and the American auto industry.... We need a strong, diversified and resilient U.S.-based electric vehicle battery supply chain”.

The core dispute had threatened the EV plans of Ford Motor Co and Volkswagen AG , as well as a Georgia plant that is key to the growing industry.

The resolution is also a win for Biden, who has made boosting EVs and U.S. battery production a top priority. The global auto industry is racing to develop EVs, and Biden has proposed spending $174 billion to hike their sales and expand charging infrastructure.

SK Innovation agreed to pay LG Energy Solution, a wholly owned subsidiary of LG Chem Ltd, 2 trillion won ($1.8 billion) - 500 billion won each this year and next, and royalties for at least six years.

“We expect our payment plan will not be financially burdensome,” an SK Innovation official told Reuters.

The companies agreed to drop all litigation in the United States and South Korea and not to raise further lawsuits against each other for 10 years.

“The two companies now can coexist in the global market and compete in good faith,” LG Energy Solution said in a statement. SK said it would invest actively both in South Korea and abroad now that uncertainties for its EV battery business in the United States have been cleared up.

The U.S. Office of U.S. Trade Representative had faced a Sunday night deadline on whether to take the rare step of reversing a U.S. International Trade Commission decision unless the companies had agreed a deal.

The Biden administration, Volkswagen and Ford had been pushing the Korean companies to settle.

DEMOCRATIC, REPUBLICAN LOBBYING FROM GEORGIA


Trade Representative Katherine Tai was personally involved in the settlement discussions, urging the companies to come to a resolution, the sources said.

“I congratulate both companies for working through their significant differences to resolve this dispute, which builds confidence in their reliability and responsibility as suppliers to the U.S. auto industry,” Tai said in a statement after LG and SK announced the settlement.

“We are pleased the two battery suppliers at the center of this recent trade dispute have come together and solved their differences,” Volkswagen said in a statement on Sunday.

“We are pleased that SK Innovation and LG Energy Solution have settled their differences,” Ford said in a statement.

BITTER DISPUTE


In the bitter two-year dispute, LG lost to SK in a bid for VW orders, then accused SK of stealing trade secrets by poaching nearly 80 of its employees. LG filed a complaint against SK in 2019, and both sides hired numerous lawyers and consultants to make their case to the Biden administration.

The ITC in February sided with LG after the company accused SK of misappropriating trade secrets related to EV battery technology. It issued a 10-year-import ban but allowed SK to import components for batteries for Ford’s EV F-150 program for four years, and VW’s North American EVs for two years.

In March, SK vowed to walk away from the $2.6 billion Georgia battery plant, which is under construction, if the ITC decision was not overturned. LG said in March it could handle the battery needs of automakers if SK abandoned the Georgia plant.

Volkswagen of America CEO Scott Keogh wrote in a LinkedIn post on Wednesday that if the ITC decision were left in place, it could “reduce U.S. battery capacity and delay the transition to electric vehicles.”

Georgia’s two newly elected Democratic U.S. senators, Raphael Warnock and Jon Ossoff, have repeatedly pressed the South Korean companies to reach agreement. The state’s Republican governor, Brian Kemp, had urged Biden to intervene.

SK’s plant in the town of Commerce, 110 km (70 miles) northeast of Atlanta, will employ nearly 2,600, the largest foreign investment in the state’s history at nearly $2.6 billion, Kemp said. “Simply put: the livelihoods of thousands of Georgians are now in your hands.”

LG Energy Solution is nearing completion of an Ohio cell manufacturing plant with General Motors Co and is close to announcing plans to build a $2.3 billion second facility in Tennessee, sources told Reuters.

In March, LG announced $4.5 billion investment plans for its U.S. battery production business over the next four years.

($1 = 1,120.9800 won)

Newsletter

Related Articles

0:00
0:00
Close
Duchess of Sussex Secures ‘As Ever’ Trademark Rights in Australia Ahead of High-Profile Visit
UK Reaffirms Security as Officials Reject Claims of Immediate Iranian Missile Threat
Rising Middle East Tensions Spark ‘Trumpflation’ Debate Over Impact on UK Households
UK Minister Says No Evidence Iran Can Strike Europe Despite Heightened Warnings
British-Iranians Voice Safety Concerns to Authorities as Regional Conflict Intensifies
Confirmed Meningitis Cases Linked to Kent Outbreak Revised Down to Twenty
UK Government Sees No Evidence Iran Can Strike London Amid Rising Regional Tensions
Debate Grows Over Recognition of Indigenous Cultural Icons in the United Kingdom
Iran Missile Launch Toward Diego Garcia Raises Questions After Failed Strike on US–UK Base
Donald Trump Amplifies Viral Satirical Clip Highlighting UK–US Political Dynamics
UK Satirical Show Draws Attention with Sketch Referencing Trump and Prince Andrew
Meghan Markle’s Possible UK Return Sparks Renewed Attention on Sussex Role
Starmer Convenes Urgent Talks on Cost-of-Living Pressures Linked to Iran Conflict
Starmer Convenes Urgent Talks on Cost-of-Living Pressures Linked to Iran Conflict
UK Investors Eye Bargain Shares Ahead of ISA Deadline Amid Market Volatility
UK Investors Eye Bargain Shares Ahead of ISA Deadline Amid Market Volatility
Northern Lights Expected Over UK Skies Tonight Amid Strong Solar Activity
UK Condemns Iran Missile Strike and Warns Against Threats to British Personnel
UK Warns of Global Flight Disruptions as Iran Conflict Escalates Under Trump’s Leadership
UK Condemns Iran After Missile Strike Targets Strategic Diego Garcia Base
Deadly Meningitis Outbreak in UK Reinforces Urgency of Vaccination Campaigns
Iran Launches Long-Range Missile Strike on Remote US-UK Base, Signaling Expanded Reach
Iran Launches Long-Range Missile Strike on Remote US-UK Base, Signaling Expanded Reach
UK Rules Out Cyprus Base Role in Joint US Self-Defence Framework
UK Ends Hereditary Peerage Rights in Parliament in Historic Constitutional Reform
Lord Walney Warns of Expanding Iranian Influence Networks Within the United Kingdom
Iranian National Among Two Arrested After Attempt to Access UK Nuclear Submarine Base
Deregulation, Artificial Intelligence, and Fraud Laws Reshape UK Financial Services Landscape
UK Considers Lower Speed Limits to Reduce Fuel Use Amid Escalating Energy Crisis
UK Borrowing Costs Surge to Post-Crisis High as Markets React to Inflation and War Risks
UK Government Prepares Emergency Economic Measures as Iran Conflict Fuels Financial Risks
Meningitis B Outbreak in the UK Raises Urgent Health Warnings as Cases Surge
Iran Issues Stark Warning to Britain Over US Base Access Amid Expanding Conflict
United Kingdom Authorizes US Strikes from British Bases as Iran Threatens Key Shipping Routes
Reform UK Suspends Scottish Candidate Following Financial Misconduct Allegations
Apple issues an unusual warning: this is how your iPhone can be hacked without you doing anything
UK and Nigeria Reach Agreement to Accelerate Return of Irregular Migrants
UK Sets New Aid Priorities Following Significant Budget Reductions
Cyprus President Urges Open Dialogue Over Future of British Sovereign Base Areas
Cyprus President Urges Open Dialogue Over Future of British Sovereign Base Areas
UK Plans 50% Steel Tariffs in Bold Move to Protect Domestic Industry
Iran Conflict Sends Shockwaves Through UK Economy as Energy Costs and Trade Risks Surge
UK Health Officials Warn Kent Meningitis Outbreak Still Active as Cases Continue to Rise
UK Climate Progress Faces Scrutiny Over Reliance on Carbon Accounting Methods
UK Deploys Advisers to United States to Shape Plan for Reopening Strait of Hormuz
Amazon Bets on AI-Driven Alexa Upgrade to Revive UK Smart Speaker Market
UK Abortion Law Changes Spark Strong Response from Church Leaders and Pro-Life Advocates
UK Abortion Law Changes Spark Strong Response from Church Leaders and Pro-Life Advocates
GB News Faces Regulatory Complaints Over On-Air Remarks on ‘Genocide’ Claims
UK Signals Expanded Support for Gulf Allies as Iranian Attacks Intensify Regional Threats
×