Sk innovation, a battery subsidiary of South Korea's SK group, said on Tuesday that it would consider withdrawing its battery business from the us if the US president did not overturn a ruling of the US International Trade Commission by April 11.
Sk innovation spokesman said: "the company has been consulting experts to discuss how to withdraw the battery business from the United States. We are considering moving the US battery business to Europe or China, which will cost tens of billions of won. "
Last week, SK innovation submitted a document to ITC demanding that February rulings not be implemented, calling them "disasters.".
"The Commission's ruling destroys the economic feasibility of SK's investment in battery production in Georgia, and it will lead the company to abandon the plant rationally," SK innovation said in the document
It is understood that as early as the spring of 2019, LG Chemical sued SK innovation for suspected theft of trade secrets. Although the latter has been defending itself, in the end, ITC decided that LG Chemical won the lawsuit, eventually making SK innovation's batteries subject to a ten-year ban in the United States.
However, in order to avoid "catastrophic supply disruption", SK innovation will be allowed to supply parts for Ford F-150 electric vehicles within four years from now, and import parts for Volkswagen MEB electric vehicle production line for two years.
In addition, SK innovation has just completed the construction of two battery factories in Georgia, which will supply Ford and Volkswagen with batteries. However, how the plant will operate in the future, the official has not given a reply.
It is worth noting that the ruling opens a 60 day review period, during which the White House can overturn the ruling on policy grounds. If the ruling is not overturned, the company will be forced to stop building a $2.6 billion battery plant in Georgia.