South Korean Electric Vehicle Battery Makers Reach $1.8B Deal To End Trade Dispute

Two of the world's largest electric vehicle battery manufacturers reached a settlement on Sunday that President Biden called "a win for American workers and the American auto industry."

The companies, SK Innovation and LG Chem, have been involved in a dispute after LG accused SK of misappropriating trade secrets. LG filed a complaint with the U.S. International Trade Commission in 2019 and the commission ruled in favor of LG, putting a 10-year ban on SK imports.

SK agreed to pay $1.8 billion in cash and royalties to LG in the settlement, and both South Korea-based companies agreed to not sue each other for the next 10 years.

The settlement means SK can finish building an EV lithium-ion battery plant in Commerce, Ga., which will provide batteries to Ford and Volkswagen, two contracts it won before the ITC ruling.