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LG Energy Solution offers SK Innovation to settle patent dispute in exchange for a share of shares
09.03.2021 [15:22],
Alexey Razin

Two South Korean companies, LG Energy Solution and SK Innovation, are caught in an intellectual property rights dispute. The US authorities have banned the second of them for ten years from supplying lithium batteries and producing them in the country. The plaintiff, represented by LG Energy Solution, demands too much compensation from SK Innovation, but is ready to accept the opponent’s shares as compensation.

Image Source: PR Newswire

The decision of the US federal authorities imposes a ten-year ban on the import and production of SK Innovation lithium batteries in the country, with the exception of contracts with Ford Motor and Volkswagen. The first carmaker will be able to receive traction batteries from SK Innovation for four years, but at the same time, products from rival LG Energy Solution are available to it. The German carmaker found itself in a more difficult situation, since the SK Innovation enterprise under construction in Georgia could fully cover Volkswagen’s needs for the supply of traction batteries, they would be enough to produce 430 thousand electric vehicles a year. At the same time, the US authorities allowed the German concern to receive batteries from SK Innovation only for a period of two years.

Disagreements over the amount of compensation are hindering the settlement of the conflict parties, Business Korea reports. LG Energy Solution expects to receive about $ 2.6 billion, and SK Innovation can offer no more than $ 440 million. According to representatives of LG Energy Solution, the defendant could have repaid part of the amount with his own shares. There are examples of such agreements in judicial practice. At the same time, SK Innovation is still more hopeful that US President Joseph Biden will veto the decision of the US International Trade Commission.

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