LG, SK: Lawmakers in Georgia call on the Korean companies to settle battery patent dispute

LG Energy Solution and SK Innovation are still in a legal battle over their battery patent infringement cases. This has been going on for a while now, and since the end is nowhere in sight, it has already affected other businesses and even local governments in the U.S. and South Korea.

In fact, some of the senators in the state of Georgia in the U.S. have called on the Korean companies to settle their dispute already. They are urging the two to talk and put an end to their legal battle on their own since it will really take a long time if the government will handle it.

Georgia’s call on LG and SKI

The Korea Herald reported that on Wednesday, March 24, each and every one of Georgia’s senators passed a resolution on Tuesday to call on LGES and SK Innovation to negotiate a settlement on their own. This is to allow the latter to move ahead and continue with the construction of its two battery factories in the region.

Apparently, LG and SK’s dispute did not just disrupt the battery supply chain to clients but also put on hold some ongoing projects. The halt affected jobs and the locality as well, and this was the major reason that prompted lawmakers in Georgia to urge the South Korean battery-makers to come up with terms that will be agreeable to both sides and end their dispute through settlements.

“Georgia has a significant economic investment in this,” Senate President Butch Miller said. “This is a real opportunity for Georgia to lead in another great manufacturing way.”

Furthermore, the lawmakers pointed out that if SK Innovation does not move forward with the construction of its plant, Georgia will be losing billions of dollars in both public and private investments. Thousands of job opportunities will be lost as well.

“I think this is the time to push both of these companies when there is uncertainty among both before it comes to the president,” Sen. Jen Jordan added in agreement to Miller’s statement. “Hopefully, these folks can come together and make sure these people stay employed.”

Sen. Jordan was referring to the fact that the companies’ dispute may have to be forwarded to President Joe Biden so it can be solved. SK is also doing everything for the POTUS to reverse the US International Trade Commission’s ruling of a 10-year ban for stealing trade secrets from LG.

Georgia’s possible penalties and SK’s derailed business plans

Meanwhile, if the LG and SK dispute will not be solved and the ban on the latter will take effect, Georgia will have to shoulder penalties since the construction of SK’s $2.6 billion EV battery plant in the state would be forced to stop.

As per Albany Herald, aside from the state penalties, the 250 workers that SK already hired for the factory will go jobless soon. The company vowed to hire thousands more, but its plans crumbled after the USITC released its ruling last month in favor of LG Chem, LGES’ parent company. Finally, at this point, even if the construction of the plants is completed, SK’s business operation will surely be derailed due to the 10-year ban.