LG wants to invest in manufacturing electric vehicle batteries in the US

Battery maker LG Energy Solution of Korea has proposed to build a plant in Georgia, USA to specialize in the production of batteries for electric vehicles.

LG plans to invest more than $ 4.5 billion in battery production in the US over the next four years. Photo: AFP

Atlanta Journal-Constitution quoted content LG Energy Solution CEO Kim Jong-hyun affirmed in a letter to US Senator Raphael Warnock on March 13 saying: “The company is ready Do whatever it takes to help the people and workers of Georgia “.

LG Energy Solution, which is wholly owned by LG Chem Chemical Company, has confirmed that the unit recently sent a letter to Senator Raphael Warnock, but declined to provide details.

According to the Atlanta Constitutional Journal, CEO Kim Jong-hyun stated in the letter that if an outside investor acquires SK Innovation’s factory in Georgia, LG can partner with that investor to operate. factory.

A senior figure at LG Energy Solution told Reuters that “the letter to the US senator was intended to clarify the current situation due to SK’s appropriation of our trade secrets and at the same time to reduce concerns. afraid of employment in Georgia ”.

Meanwhile, a manager at SK Innovation dismisses the idea that LG wants to take over the company’s factory. “LG’s statement regarding the acquisition of the SK Innovation plant in Georgia makes no sense as the carmakers do not allow the supplier to arbitrarily change the contract. Therefore, it is unreasonable to do so. LG said they could take over this factory and replace us, “a SK Innovation leader told Reuters.

The letter LG Energy Solution sent to Senator Raphael Warnock in the context of Georgia Governor Brian Kemp, on March 12, once again petitioned US President Joe Biden to overturn the decision of the US International Trade Commission ( ITC) for SK Innovation to save thousands of jobs in the state that are directly related to SK Innovation’s electric vehicle battery factory.

LG Energy Solution is said to have a legal feud with “fellow countryman” SK Innovation over accusing SK of stealing its trade secrets. The US International Trade Commission sided with LG Chem in its February ruling and issued a 10-year import order for SK lithium-ion batteries (rechargeable batteries).

However, SK Innovation lobbied the White House to overturn the decision of the US International Trade Commission. Therefore, this decision is still likely to be denied if SK and LG reach an independent agreement.

LG on March 11 announced plans to invest more than $ 4.5 billion in battery production in the US over the next four years, including plans to build at least two new factories in the country.