The United States is lagging behind China and South Korea when it comes to electric vehicle battery supplies. The pickings are therefore rich for foreign countries, as more American motorists realize climate change is phasing petroleum out. No wonder then that a Korean battery war has broken out regarding who should supply U.S manufacturers with EV batteries.
Short History of Korean Battery War Conflict
South Korea’s SK Innovation beat local rival LG Chem when Volkswagen U.S awarded it an EV battery supply contract. SK began building a $1.7 billion factory in Commerce, Georgia, right away. This is 125 miles from the VW Chattanooga factory which will become the car maker’s U.S. electric vehicle hub.
However, as Reuters reported on November 27, 2019 the Korean battery war was far from over. That’s because LG Chem across the Han River in Seoul took SK Innovation on in U.S. courts. The case revolved around allegedly misappropriating trade secrets after 77 of its employees crossed over to the other side. Seven months later, the two companies are still firing salvos.
The War Spreads to other U.S. EV Makers
The stakes are high as SK Innovation and LG Chem fight to supply American VW, GM, Jaguar, Audi, and Kia factories. The cases reveal alleged patent infringements, which if proven could block battery imports to the United States.
“Whoever loses the fight would suffer a fatal blow, unless the two reach a settlement. This will also be a setback for automakers.” Cho Jae-phil, professor at Ulsan National Institute of Science and Technology who worked at Samsung SDI says. Ford’s Jennifer Flake said it was encouraging LGC and SKI to resolve their conflict without litigation. While GM’s Patrick Morrissey said the company was aware of the Korean battery war.
Reuters says Kia, Jaguar, and Volkswagen (which owns Audi) reserved their comments. We hope SK Innovation and LG Chem see sense and negotiate a compromise. That’s because we don’t believe America can afford delays in implementing electric transport.
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