SK has already hired more than 220 employees in the contested plant, a fraction of the 6,000 jobs that it claims could be created in Georgia.
If the endangered SK battery plant is closed in trade due to an intellectual property dispute, the outcome for Georgia could be twice as bad as previously expected.
As it turned out, the Korean company was not only planning the previously disclosed capital investments of $ 2.6 billion and 2,500 jobs, but had already selected the location to receive double the amount of each.
SK’s plan to spend $ 5 billion in the U.S. US The battery business has never been a mystery, but in a presentation outside the US sales representative’s office last week, the company tied the entire plan to the Georgia site for the first time, noting that the company “plans to raise a total of US $ 5 billion. Investing dollars by 2025 is expected to expand the facility and create a total of 6,000 high-paying jobs. ”
The reveal increases Georgia’s share of the company’s ongoing legal battle with rival LG Energy Solutions.
Last month the International Trade Administration made a final decision in their dispute, finding that SK violated document retention requirements while battling LG’s claims that it stole trade secrets while hiring key talent. SK claims the ITC ruling was misplaced as the activity took place in Korea, where it claims the original recruitment practices in question were legal.
In both cases, SK is now banned from importing batteries and components for electric vehicles for 10 years, with a spin-off that allows it to fulfill existing orders from Ford and Volkswagen for two and four years, respectively, around automakers’ time to give these to find alternative supplies for their new EV models.
SK argued that the carveout recognizes the scarcity of battery supplies in the US and effectively doomed the facility to shutdown, threatening both President Biden’s clean energy goals and livelihoods for Georgians.
Mr Biden has approximately 35 days in a 60-day period to review and overturn the judgment, a measure that would be rare but not unprecedented.
In its USTR presentation, SK stated that the carveout is wrong as battery programs take more than five years to complete after research and development. The company said removing SK from the market removes 47 percent of the country’s “non-captive battery supply” – which is not controlled by an OEM like Tesla – and puts other automakers under an LG Energy Solutions monopoly. To make things easier, SK said these auto companies would likely be forced to source from China, adding to their already significant lead in lithium-ion batteries.
LG has a lawsuit pending in federal court that could result in financial damage. A fact that SK uses to argue that presidential intervention would not prejudice LG’s rights. It has also been argued that LG already has as much business as it can fulfill.
Both sides have said they are open to resolving the dispute, especially after the Korean prime minister described the conflict between two of the country’s global leaders as “embarrassing” in January.
An SK spokesperson offered this explanation:
LG is refusing to make good faith efforts to resolve this dispute. LG’s outrageous settlement demands would make SKI’s Georgia battery factory economically unprofitable. Additionally, the ITC remedial measures are making it impossible for SKI to continue building their second facility, a multi-billion dollar investment. It is important that President Biden use his power to disapprove of the ITC remedial action in this case and to protect the interests of American stakeholders – including the many workers whose jobs are supported by this facility. If the ruling is not overturned, SKI will be forced to consider all possible options, including closing down its Georgia operations.
LG did not make a public statement regarding the SK presentation in front of the US sales representative’s office, but upon making the original decision, LG said, “SKI’s complete disregard for our warnings and intellectual property rights has left us no choice but to file this case , and so are we. I thank the International Trade Commission for protecting our innovations and significant economic investments in the United States. “
Georgia officials have got into an argument with the government. Brian Kemp calls on Mr. Biden to overturn the sentence and calls on the newly elected US Senator. Raphael Warnock said the ITC judgment was dated February 10th “A heavy blow in the stomach” for the workers in Georgia, according to Reuters.
Duel op-eds, first from Atlanta attorneys advising LG, and later a joint line from Georgia Department of Economic Development Commissioner Pat Wilson and former ambassador Andrew Young has shown different views on the subject over the past few weeks.
Global Atlanta published both sides:
Opinion: SK Battery Plant puts Georgia in the driver’s seat for green energy jobs
Opinion: Trade secret thief gives Georgia wrong choice between jobs and justice