US trade panel backs LG in trade secret dispute, bans SK import

The US International Trade Commission (ITC) ruled in favor of South Korean battery maker LG Energy Solution Ltd. in a trade secret case over SK Innovation Co. and issued a 10-year import ban on some of the latter's lithium-ion battery products.

The ruling affirms a preliminary judgment in February 2020 supporting LG's claims that SK stole its trade secrets for developing electric vehicle (EV) batteries.

According to LG Energy Solution, which is wholly owned by LG Chem Ltd., SK hired its former engineers to get sensitive information on LG's battery technology.

However, the ban issued by the ITC does not include SK's shipment of components for its clients' domestic production due to "public interests.".

Among SK's clients are Ford Motor, Volkswagen, and Kia.

SK Innovation may provide lithium-ion battery products for Ford Motor EV F-150 program for four years and for Volkswagen's EV production line in North America for two years.

SK Innovation has been building a factory in Georgia set for completion by 2022, which will produce EV batteries for Volkswagen and Ford.

A second plant is also being built on the site that would hire 2,600 people by 2024.

LG supplies batteries to Tesla, GM, Volkswagen, Hyundai, and a number of other automakers. It produces batteries in its Michigan plant and is building another factory in Ohio to supply Utlium Cells in a joint venture with GM.