SK Innovation might pull its battery business from the United States

By Akshay Kedari  | Date: 2021-03-31

SK Innovation might pull its battery business from the United States

SK Innovation Co., a South Korea-based petrochemical, energy, and e-mobility battery manufacturer, has recently announced its plans of withdrawing its battery operations from America if U.S. President Joe Biden fails to overrule a trade panel decision made against it by mid-April.

For those unaware, LG Energy Solution Ltd., a privately-owned battery division of LG Chem, had initially alleged that SK Innovation embezzled trade secrets regarding its electric vehicle battery technology.

 The U.S. International Trade Commission (ITC) then released a 10-year exclusion order last month forbidding imports of lithium-ion batteries of SK Innovation in the country, thus supporting LG Energy Solution Ltd. However, this order will not be applicable if both companies come to an agreement.

This ITC ruling against SK Innovation can apparently be overturned by U.S. President Joe Biden after conducting a presidential review period of around 60 days, which ends on 11th April.

If reports are to be believed, SK Innovation deemed that it will be forced to halt the construction of its battery plant worth USD 2.6 billion in Georgia if President Biden fails to overturn the decision.

The South Korean company claimed that the Commission’s orders will hamper the economic viability of its investment in battery production in Georgia and will thus lead to its desertion.

Moreover, a spokeswoman for SK Innovation mentioned that the company has been discussing methods to pull out its battery business from the United States. She further added that the group is currently assessing a move to Europe or China which would still result in significant costs.

According to reliable sources, if President Biden supports the ITC’s ruling, SK innovation will not only face a 10-year ban on imports, production, and sales in the U.S. but also will be required to pay USD 2.7 billion in compensation.

Source credits –

https://auto.economictimes.indiatimes.com/news/auto-components/sk-innovation-says-may-pull-its-battery-business-out-of-u-s-/81755381

 

About Author

Akshay Kedari     aeresearch.net

Akshay Kedari

A qualified computer engineering graduate, Akshay Kedari takes pride in having his way with words. Following his passion for content creation, he writes insightful pieces on aeresearch.net and a few other portals. Also endorsed with a short-term experience in web deve...

Read More >>

More News By Akshay Kedari

Bayer sells environmental science biz to Indian firm for $13.5 million

Bayer sells environmental science biz to Indian firm for $13.5 million

By Akshay Kedari

German multinational pharmaceutical and biotechnology company, Bayer CropScience recently stated that its board has given the go-ahead for selling its Environmental Science Business to 2022 ES Discovery India, a private Indian company. The deal wi...

Stockly to raise another $12M to expand its operations & employee base

Stockly to raise another $12M to expand its operations & employee base

By Akshay Kedari

French-based software startup, Stockly is reportedly raising another $12 million (€12 million) in a Series A round from Daphni, Eurazeo, and several other business angels. Apparently, the firm pools together the inventory of several e-commerc...

Alipay+ allies with Asian E-Wallets to boost cashless travel in South Korea

Alipay+ allies with Asian E-Wallets to boost cashless travel in South Korea

By Akshay Kedari

Amidst rising efforts for promoting cashless travel, prominent mobile payment providers in Asia have recently announced an integration of the cross-border digitalized payment solutions from Alipay+ in South Korea. With this move, users of e-wallet...

Seracle, Sumsub partner for offering enhanced KYC protocols and cybersecurity

Seracle, Sumsub partner for offering enhanced KYC protocols and cybersecurity

By Akshay Kedari

Sumsub will assist Seracle in building an innovative blockchain ecosystem Sumsub will offer enhanced security to Seracle at a time when losses due to cryptocurrency thefts have increased by about 60% to $1.9 billion Seracle, a global blockc...

CATL unveils new Module to Bracket tech for heavy-duty electric trucks

CATL unveils new Module to Bracket tech for heavy-duty electric trucks

By Akshay Kedari

CATL, a Chinese battery manufacturer and technology company, has reportedly introduced a new battery technology known as Module to Bracket (MTB) for heavy-duty electric trucks. As per reliable sources, the MTB technology deploys the battery module...