The US International Trade Commission (USITC) in May 2019 had voted to start an investigation against SK Innovation on the basis of allegations from competitor LG Chem.
SK Innovation Co Ltd is a Korean chemical and electric vehicle (EV) battery maker. It is an EV Battery supplier for Volkswagen and Ford Motors. The investigation against it was initiated because LG Chem alleged that SK Innovation had stolen valuable trade secrets regarding electric-vehicle battery technology, and also destroyed evidence that could help LG Chem to easily prove its case.
Now, the USITC has come up with an official ruling issuing a limited 10-year exclusion order prohibiting imports into the United States of certain lithium-ion batteries by SK Innovation. However, SK will be allowed to import components for domestic production of lithium-ion batteries and other parts for the Ford F-150 for four years, and Volkswagen MEB electric vehicles line for the North America region for two years.
SK Innovation is not being forced to stop work immediately, other than the above, the USITC further added that SK Innovation is also permitted to replace or repair its batteries in Kia vehicles sold to U.S. consumers.
It is likely that the vehicles under consideration will require some tweaks to accommodate EV batteries and components from different suppliers, but the main question is exactly how much work is required remains to be seen. According to previous reports, Ford told ITC in May that EV batteries cannot be interchanged just like flashlight batteries.
However, After the decision, Ford’s spokesperson said in a statement that “The decision upholds company’s plans to bring the Ford EV F-150 to market in mid-2022”. Jim Farley, Ford CEO hoped in a tweet, the two companies can come to a settlement, which would be beneficial for US manufacturers and workers.
Volkswagen spokesperson said that We are continuing to analyze the ruling from the US International Trade Commission and its impact on our Company’s plan.
However for now EV battery supplier SK Innovation is banned in the US for 10 years, but it is not being forced to stop work immediately. It can supply and repair batteries in some EVs for a few more years.
