From Ford Authority. Farley will continue to push the government for intervention knowing that SK violated the patent. From Ford Authority:
Ever since the U.S. International Trade Commission (ITC) ruled against SK Innovation – the forthcoming 2023 Ford F-150 Electric battery supplier – in a complaint from rival LG Chem that it misappropriated trade secrets related to EV battery technology, the two companies have been engaged in heated settlement talks which would nullify the ruling. However, these talks have not gone well as SK attempts to preserve its plans to open a manufacturing plant in Georgia.
Now, the embattled EV battery manufacturer is threatening to pull its entire business out of the U.S. if President Joe Biden does not overturn the ITC’s ruling, which he has the power to do by April 11th. “The company has been consulting with experts to discuss ways to withdraw our battery business from the United States,” an SK Innovation spokeswoman told Reuters. “We are reviewing options to move our U.S. battery production to Europe or China, which would cost us tens of billions of won.”
The ITC ruling allows SK to remain the Ford F-150 Electric battery supplier for four years, and until that time, the company can legally import lithium-ion batteries, battery cells, battery modules, and battery packs into America. After that, Ford would have to find a new battery supplier for the F-150 EV.
Thus far, SK has said that it is unwilling to accept any proposal from LG that would get in the way of its planned U.S. operations or reduce its business competence. In recent weeks, LG also suggested that it could take over SK’s currently-under-construction, $2.6 billion dollar factory in Georgia, much to the chagrin SK Innovation brass.
Currently, LG Chem is demanding that SK Innovation pay penalties of up to 3 million won ($2.462 million USD), while SK is proposing a settlement of less than $1 million won ($880k USD). Meanwhile, 2,600 potential jobs hang in the balance.
We’ll have more on this ongoing battle very soon, so be sure and subscribe to Ford Authority for around-the-clock Ford news coverage.
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Two separate rulings:
Back in February, the U.S. International Trade Commission (ITC) ruled against Ford F-150 Electric battery supplier SK Innovation in a complaint from rival LG Chem that it misappropriated trade secrets related to EV battery technology. However, the ITC was also reviewing another complaint from 2019 that SK infringed on four of LG’s patents, and it has now cleared the South Korean battery manufacturer of any wrongdoing in that regard.
SK noted that it fully expected the ruling in its favor, noting that it has spent the last several years developing its own lithium-ion battery technology. Meanwhile, LG said that “the ITC’s decision is regrettable, but we respect its decision.” Though the ruling is a separate matter from the misappropriation of trade secrets dispute, it is possible that the former has some bearing on the outcome of the latter.
The clock is ticking on that matter as SK seems to be banking on the possibility that President Joe Biden might overturn the ITC’s ruling by an April 11th deadline. SK and LG can also come to a settlement that would nullify the ruling, but so far, these talks have not gone well as SK attempts to preserve its plans to open a manufacturing plant in Georgia. Most recently, SK threatened to pull its entire business from the U.S. if Biden doesn’t act.
If they can't get batteries is it too late to put a 5.0 in it?
$50 Billion valuation, $150 Billion debt. Beggars with our hands out for help.