Ford, Volkswagen EV Battery Supplier Dealt Setback by Trade Commission
February 10 2021 - 6:22PM
Dow Jones News
By Ben Foldy
A federal trade commission ruled against battery maker SK
Innovation Co. in a case that could disrupt Ford Motor Co. and
Volkswagen AG's plans to build electric vehicles in the U.S.
The U.S. International Trade Commission, an independent
government agency, affirmed Wednesday a judge's earlier ruling in
favor of rival LG Chem, which in 2019 accused SKI of stealing trade
secrets related to lithium-ion battery production. SK Innovation
has denied the allegations.
The commission's ruling threatens two new battery plants SKI is
building in Georgia to supply Ford and VW with batteries for models
set to go into production in the next two years. The Korean company
has said it is investing $2.6 billion on the project.
In its ruling, the commission prohibited SKI from importing its
batteries for 10 years. However, the ruling allowed the company to
import equipment necessary to make batteries for Ford and VW for
four and two years, respectively, to allow the auto makers time to
find another domestic battery supplier.
Write to Ben Foldy at Ben.Foldy@wsj.com
(END) Dow Jones Newswires
February 10, 2021 18:07 ET (23:07 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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