Ford, Volkswagen EV Battery Supplier Dealt Setback by Trade Commission

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 [e-mail]

(END) Dow Jones Newswires

February 10, 2021 18:07 ET (23:07 GMT)

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