June 5, 2023

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LG Chem, SK Innovation spar over EV recalls in trade dispute

WASHINGON/SEOUL — South Korean battery makers LG Chem and SK Innovation are sparring about whether or not the U.S. Global Trade Commission really should consider modern EV recollects in a trade insider secrets circumstance.

LG Chem, an EV battery supplier for Tesla and Standard Motors, submitted its trade complaints from SK Innovation last year in the U.S. Alleging trade solution theft, LG seeks to block SK from generating battery cells in the U.S. and from importing the factors essential to make them.

SK has denied wrongdoing. 

Very last thirty day period, SK requested the ITC to consider that “LG Chem batteries have been associated in a series of fires and explosions, elevating considerable community curiosity concerns.”

In the ask for, SK mentioned Standard Motors and Hyundai Motor Co. experienced each individual issued modern recollects for EVs with LG Chem batteries. The recollects “raise issues of community protection and underscore the vital require for SK batteries in the United States,” the firm mentioned.

It extra the fires are “persuasive grounds” not to impede SK’s skill to manufacture batteries at its U.S. plant. LG Chem in a response submitted Wednesday mentioned the submitting was “untimely and irrelevant” and really should not factor in the ITC assessment “due to the fact the electric car recollects cited by SKI do not influence foreseeable future-year battery designs and do not influence EVs with batteries manufactured in LG Chem’s Holland, Mich., plant.”

GM mentioned last thirty day period it was recalling 68,677 EVs all over the world for substantial-voltage batteries following 5 noted fires and two slight injuries. In October, Hyundai recalled almost 77,000 Kona EVs all over the world, declaring achievable problems in battery cells elevated fire hazards.

The ITC is anticipated to have a selection on the make any difference up coming 7 days. An adverse ruling could perhaps bring about setbacks for Volkswagen Team and Ford Motor Co. as they move to build new electric motor vehicles utilizing SK Innovation’s batteries and factors. SK is constructing a $2.6 billion battery plant in Ga to provide Ford and VW.