ATLANTA (AP) – With a giant battery factory in northeastern Georgia in a commercial dispute, South Korean company LG Energy Solution is now telling some Georgia employees that it could build its own factory in the state if rival SK Innovation can . t proceed.
The Atlanta Journal-Constitution reports LG Energy Solution CEO Jong Hyun Kim, wrote a letter on Wednesday to United States Democratic Senator Raphael Warnock, saying that LG “is prepared to do everything we can to help the people and workers of Georgia ”.
Kim also wrote that if any other entity acquires the SK factory, LG could help manage the $ 2.6 billion electric vehicle battery factory in Commerce, where SK plans to hire 2,600 workers.
“A number of investors and manufacturers … will be interested in the trading plant due to the increased demand for electric vehicle batteries,” wrote Kim.
On Thursday, LG announced plans to build at least two new factories and spend more than $ 4.5 billion to manufacture batteries for electric vehicles in the United States, in addition to a factory that already operates in the Netherlands, Michigan, and is building in Lordstown, Ohio, and one that could build in Spring Hill, Tennessee. All of these factories are in partnership with General Motors.
LG’s opening came when Republican Governor Brian Kemp renewed on Friday his appeal to President Joe Biden to overturn a federal trade decision that threatens SK’s ability to move forward.
The U.S. International Trade Commission decided in February that SK stole 22 trade secrets from LG and that SK should be banned from importing, manufacturing or selling batteries in the United States for 10 years.
SK has contracts to supply batteries for a Ford F-150 electric truck and a Volkswagen electric SUV to be manufactured in Chattanooga, Tennessee. The commission said SK could supply batteries to Ford Motor Co. for four years and Volkswagen for two years. SK can also repair and replace batteries in Kia vehicles that have already been sold.
An SK spokesman said in an emailed statement that “it is simply impossible for someone to acquire an EV battery factory and operate it to produce batteries acceptable to a major auto company.”
“The monopolization of the US battery supply chain by LG will only delay the US in its efforts to reach China,” wrote the spokesman.
Biden has until April to review or block the decision and the two sides are lobbying, part of a game of chess that also involves negotiations between the companies. SK lost the decision in part because it destroyed the evidence. The commission called the action “extraordinary” and concluded that SK’s top executives ordered the destruction.
SK said this week that its directors rejected LG’s claims for compensation. LG said it was “unfortunate” that SK was not willing to negotiate and said it would accept cash, royalties on future battery sales or a stake in SK’s business.
Georgia has given $ 300 million in free land, money and other incentives to SK’s factory, which is now partially built and is due to open in 2022.