LG Energy Solution Requests Building Battery Plant In Georgia
One of the newest ventures in business tech news is that South Korean company LG Energy Solution is considering building a factory in Georgia in order to manufacture electric vehicle batteries. To begin the discussion of building a factory within the states, the company’s CEO Kim Jong-hyun wrote a letter to US Senator Raphael Warnock.
Per the Atlanta Journal-Constitution, Kim Jong-hyun agreed that LG could partner with a separate investor if they acquired the Georgia-based SK Innovation plant, but SK Innovation has already shut that idea down.
LG Energy Solution officials stated that the purpose of this letter is to address situations that came about from SK’s misappropriation of trade secrets and to reduce concerns relating to the job market in Georgia. SK Innovation, however, is against LG using the plant.
According to SK officials, LG’s request made little sense because automakers in the States do not allow a change in suppliers and contracts. In other words, SK finds LGS’s request absolutely preposterous.
LG vs SK
As of late, LG Energy Solution and SK Innovation have been in a legal feud. LG accuses SK of stealing trade secrets. The International Trade Commission sided with LG, resulting in a 10-year limit on SK lithium-ion batteries imports.
Around the same time as LG’s letter, Brian Kemp, Georgia’s governor, requested US President Joe Biden to overturn his ruling against SK Innovation. Kemp repeated his request on the grounds of saving jobs related to the battery factory within Georgia.
SK Innovation has also requested that the White House overturn the decision. However, the decision could be negated if LG and SK were to reach some sort of independent settlement.
Despite all of the drama concerning LG and SK, LG plans to invest over $4.5 billion in business related to US battery production by 2025. These plans also include building two new plants.
These findings show the continued battle between the two tech powerhouses. LG continues to build up its battery industry and presence in the US. Even though SK Innovation has already halted their proposition to take over the SK plant, LG remains hopeful that Georgia would consider building a new factory for their manufacturing.
The proposition that this new factory could bring $4.5 billion to the US theoretically would help fill the work gap left due to the ban on SK Innovation. However, more news is developing as SK Innovation continues to lobby for the White House to overturn its decision.