ITC backs LG in high-profile trade secret dispute, issues limited import ban on SK

A U.S. trade panel on Wednesday ruled in favor of South Korean battery maker LG Energy Solution in a trade secret case and issued a 10-year import ban on some lithium-ion battery products by SK Innovations.

The U.S. International Trade Commission (ITC) affirmed a preliminary ruling delivered in February 2020 to support LG's claims that SK used stolen trade secrets to develop its electric vehicle (EV) batteries.

The ITC issued "a limited exclusion order" for 10 years to ban import of some lithium-ion batteries and its components by SK Innovation, but permitted shipment of components for domestic production of its clients, including Ford Motor, Volkswagen and Kia, considering "public interests."

The limited exclusion order permits SK Innovation to import components for domestic production of lithium-ion battery products for Ford Motor EV F-150 program for four years and for Volkswagen's EV production line in North America for two years to permit these third parties to transition to new domestic suppliers, the ITC said in the ruling.

It also allows permit SK Innovation to import articles for repair and replacement of EV batteries for Kia vehicles that had been sold to U.S. customers as of the date of the orders and were originally equipped with SK batteries.

The final ruling deals a heavy blow to SK Innovation, which has been building a factory in Georgia, to be completed by 2022, to provide EV batteries to Volkswagen and Ford.

It also is building its second plant in the site and has pledged to hire 2,600 people by 2024. (Yonhap)