Seemingly good news for U.S. automakers planning their future shift to electric vehicles: The recent $2 billion settlement between SK Innovation and LG Chem, following a trade-secrets dispute between the South Korean battery manufacturers.
The settlement means SK Innovation will be able to maintain U.S. operations after a decision by the U.S. International Trade Comm. that would have forced the firm to exit the U.S. market. It would also have jeopardized the fate of two Georgia plants; SK is building to supply automakers like Ford and Volkswagen. With these facilities, SK will own nearly half of free-market manufacturing capacity for lithium-ion batteries in the U.S., a crucial asset for American automakers that lack joint ventures with established battery manufacturers, such as GM’s partnership with LG Chem.
Many foreign EV battery manufacturers are eyeing the U.S. market, in part as a response to their inability to make inroads in China, the world’s largest market for electric vehicles, which is already dominated by domestic battery suppliers.
Now we need a detail plan on how we are going to recycle all of these electric car batteries in the future.