Two South Korean electric car battery manufacturers reached a last-minute settlement.
According to the statements of the two companies, SK Innovation Co. Agreed to pay 2 trillion won (US$1.8 billion) to LG Energy Solution, a subsidiary of LG Chemical, with half of the cash and royalties.
The two companies “will be committed to helping the development of the electric vehicle battery industry in South Korea and the United States through healthy competition and friendly cooperation,” the two parties said in a joint statement. “In particular, we will work together to strengthen the battery network and the environmental protection policies pursued by the Biden administration.”
The settlement agreement will enable SK Innovation’s batteries to avoid a 10-year US import ban and end the two-year dispute between the two companies. The import ban may complicate the launch of Ford’s (12.51, 0.00, 0.00%) new F-150 electric pickup truck and Volkswagen’s (35.075, -0.43, -1.20%) ID.4 SUV – both will be Production will start next year, using electric car batteries assembled at the SK Innovation plant in Georgia.