LG Chem files patent suit against China's Ronbay

Jae Se Energy and Chungju city government officials shovel during the groundbreaking ceremony for the factory of the Korean subsidiary of China's Ningbo Ronbay New Energy Technology at an industrial complex in the North Chungcheong Province city in this April 2021 photo. Courtesy of Chungju city government

LG Chem has filed a complaint with the Seoul Central District Court against Jae Se Energy, alleging that the Korean subsidiary of China’s Ningbo Ronbay New Energy Technology infringed its patents on battery materials technologies by producing and selling cathode materials in Korea.

The unprecedented lawsuit between major battery materials producers in Korea and China came after LG Chem analyzed samples of Ronbay’s cathode materials.

Earlier this month, the court accepted LG Chem’s request for the preservation of evidence at Jae Se Energy’s factory in Chungju, North Chungcheong Province.

The case is also under review by the Korea Trade Commission, as LG Chem asked the commission earlier this year to look into Ronbay’s unfair practices. The commission is expected to draw a conclusion by the end of this year.

“LG Chem has accumulated a strong intellectual property portfolio with global coverage, having invested in R&D for advanced battery materials that improve the performance of lithium-ion batteries, contributing to the development of the electric vehicle industry for a long time,” said Min Kyung-hwa, senior vice president and head of intellectual property group at LG Chem.

“We will continue to pursue the legitimate exercise of our rights and will also lead the collective efforts for industry development by providing various intellectual property business models to global battery materials companies including licensing our strong intellectual property suites.”

Ronbay, which is listed on the Shanghai Stock Exchange, is China’s leading producer of high-nickel cathode materials for EV batteries.

Its Korean subsidiary, which runs a factory in Chungju started the construction of a second plant in August and decided to build another one next year. Once the projects are finished, it will be able to produce 100,000 tons of cathode materials a year within Chungju.

The Chinese firm is said to have denied the allegations, asking the Korean Intellectual Property Office to nullify LG Chem’s patents related to the lawsuit.

Jae Se Energy did not immediately respond to a request for comment.

Industry officials expect additional conflicts between battery firms in Korea and China, as competition is intensifying in the sector amid Washington’s attempts to curb the growth of Chinese companies.

Last year, Jae Se Energy and Huayou Cobalt were not allowed to join the Korea Battery Industry Association, which is led by LG Energy Solution (LGES), a battery manufacturing subsidiary of LG Chem.

LGES also warned earlier this year of stern measures against a surge in patent infringements by latecomers in the battery industry, saying that it has been making efforts for fair competition in the global battery industry by establishing a fair patent licensing market.