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Volkswagen asks the US government to use the SK battery for 4 years
Check-in: 2021.02.13 19:11
Georgia Governor Asks Biden to “Veto” When Supply Turns Unstable Due to ITC Import Ban
Automaker Volkswagen (VW) has been calling on the US government to make it possible to use batteries for electric vehicles produced by SK Innovation for at least four years.
According to Reuters, Volkswagen said in a statement on the 12th (local time) that “we suffered unwanted damage due to a dispute between two Korean battery suppliers (SK Innovation and LG Energy Solutions).”
Volkswagen expects the operation of its electric car production line in the US to be disrupted by the defeat of the dispute by SK Innovation.
Earlier on the 10th, the US Trade Commission (ITC) raised the hand of LG Energy Solutions after acknowledging that SK Innovation infringed trade secrets in the dispute between the two battery companies.
Consequently, the ITC issued an order to block imports of batteries and parts that violate SK Innovation’s trade secrets into the US for 10 years and to prohibit the distribution and sale in the US for 10 years of items. that have already been imported.
However, ITC allowed SK Innovation to import batteries for the Volkswagen electric vehicle production line in the US for two years.
Similarly, for four years, SK Innovation was allowed to import parts necessary for battery production in the United States for Ford’s F-150 electric vehicle program.
Photo. Volkswagen electric vehicle production line (Source: Yonhap News)
SK Innovation is currently building plants 1 and 2 that can produce 430,000 electric vehicle batteries per year (21.5GWh) by investing about 3 trillion won in Georgia.
Plant 1 is preparing to produce prototypes after construction is complete and will supply 200,000 batteries per year to be mounted on Volkswagen’s electric vehicle platform (MEB) starting next year.
This is equivalent to all electric vehicles that Volkswagen will sell in the North American market.
Considering the commissioning and construction period of the Georgia plant, it is noted that SK Innovation can only deliver batteries to Volkswagen and Ford within the grace period of only one and two years, respectively.
Electric vehicle batteries are a field that requires long-term cooperation since platform development with automakers, so it is possible that Volkswagen and Ford will terminate the contract with SK and quickly find a new battery supplier if SK cannot quickly take action to eliminate the problem. import ban.
In this situation, the US Governor of Georgia on the 12th urged US President Joe Biden to reverse the ITC decision.
Governor Brian Kemp issued a statement calling for the veto, saying the decision could damage the construction of SK Innovation’s electric vehicle battery plant in Georgia.
“Unfortunately, the recent ITC decision (Corona 19) puts SK’s 2,600 clean energy jobs and significant investments in innovative manufacturing at risk during the pandemic,” Governor Kemp said.
