Will Biden Overturn The Ruling Against SK Innovation?
Brian Kemp, governor of Georgia, recently approached theUS President, Joe Biden for the reversal of the trade ruling made against SK Innovation. He reasoned that the decision would hurt the electric vehicle battery manufacturer’s plant being constructed in the southern state.
Just two days after International Trade Commissioner of the US favored LG Chem Ltd, did this request come from Kemp. SK Innovation was accused of embezzling trade secrets related to EV battery technology.
The US commission has been inspecting SK Innovations since June 2019 when LG Chem filed a complaint against the former. LG Chem alleged SK Innovations of violating the US Tariff act pertaining to the importation and sale of EV batteries by misappropriating trade secrets.
A year ago a commission judge had passed a ruling that SK Innovations had plundered the evidence. However, the commission reserved to review the matter in its entirety.
The US President has 60 days to overturn the decision, which incorporated a 10-year exclusion order restricting imports of certain batteries into the US. The move could viably restrict the organization from providing EV batteries in the United States except if the organization can source all the required materials there. This according to a step analyst is not feasible.
Kemp advocated on behalf of SK Innovations. The Commission’s new decision puts SK’s huge interest in 2,600 clean energy occupations and advanced production in danger during a pandemic.
Kemp cautioned that the long-term possibilities for SK Innovation’s $2.6 billion battery plant in Jackson County, Georgia, would essentially be hurt. The plant will ultimately form batteries for Volkswagen AG and Ford Motor Co.
White House authorities haven’t remarked on the situation yet. SK authorities too seem to not have made a comment or statement. However, LG Chem considered Georgia a survivor of SK’s activities.
Song Jung, counsel for LG Chem stated that SK Innovation could cure the defect by sufficiently compensating LG for their improper conduct. He added that LG Chem needed to work with Governor Kemp to help the plant and the specialists while upholding the law.
CEO of Ford, Jim Farley openly encouraged LG Chem and SK Innovation to arrive at an agreement. VW and Ford had previously cautioned that US legal clash with South Korean battery creators could disturb supplies of the key EV parts. It would also resultantly cost USjobs amidst the COVID-19 pandemic.
While the commission favored LG Chem, it facilitated SK in importing parts for local manufacturing of lithium-ion batteries. For the EV F-150 program for Ford, it permitted production for four years for Volkswagen of America’s EVs two years.
SK Innovation said after the decision that it lamented the choice. However, it found hope in the 60-day period during which the president could overturn the ruling. Biden has his focus on EVs and reducing vehicle emanations. Now it remains to be seen if Biden will overturn the decision.