LG Energy Solution suggests building EV battery factory in Georgia

Forward Industries

13/03/2021 09:11

By Heekyong Yang
    SEOUL, March 13 (Reuters) - South Korean battery maker LG
Energy Solution suggested that it could build a factory in the
U.S. state of Georgia to manufacture batteries for electric
vehicles, an official at LG Energy Solution said on Saturday. 
    In a letter to U.S. Senator Raphael Warnock, LG Energy
Solution CEO Kim Jong-hyun said that "the company is prepared to
do whatever we can help the people and workers of Georgia,"
according to The Atlanta Journal-Constitution. 
    LG Chem's  051910.KS  wholly owned battery division, LG
Energy Solution, confirmed that the company had recently sent
the letter to the senator, but declined to confirm the details.
    Kim also said in the letter that if an outside investor
acquires a separate SK Innovation  096770.KS  plant in Georgia,
LG could partner with it to run the facility, the Atlanta
Journal-Constitution reported. 
    "(The letter) was intended to clearly address the current
situation that has been caused by SK's misappropriation of our
trade secrets as well as to alleviate concerns about jobs in
Georgia," an official at LG Energy Solution said in a statement
to Reuters.
    An official at SK Innovation rejected the idea of LG taking
over its plant. 
    "LG's statement regarding acquiring the plant does not make
any sense as automakers do not allow contract and suppliers to
change in a separate manner. With that being said, it's
unreasonable for LG to say it could take over the plant and
replace us," the official told Reuters.
    LG's letter came as Georgia's governor, Brian Kemp, on
Friday repeated his request for U.S. President Joe Biden to
overturn the U.S. International Trade Commission (ITC)'s ruling
against SK Innovation to save thousands of jobs in the state
directly tied to SK's battery factory.  urn:newsml:reuters.com:*:nL1N2KI2DX
    LG Energy Solution has been in a legal feud with SK
Innovation over allegations that SK stole trade secrets. The ITC
sided with LG Chem in February and issued a 10-year order
prohibiting most U.S. imports of SK lithium-ion batteries.
    SK Innovation has lobbied the White House to overturn the
decision, which could also be negated if SK and LG reach an
independent settlement.  urn:newsml:reuters.com:*:nL1N2KG37H urn:newsml:reuters.com:*:nL4N2L900S
    On Thursday, LG announced its plans to invest more than $4.5
billion in its U.S. battery production business over the next
four years, including plans to build at least two new plants.
 urn:newsml:reuters.com:*:nL1N2L91W6
    

 (Reporting by Heekyong Yang. Editing by Gerry Doyle)
 ((Heekyong.Yang@thomsonreuters.com; +82 2 6936 1470;))