The deal reached Sunday between South Korean companies LG Energy Solution and SK Innovation will have SK pay LG 2 trillion Korean won, or $1.8 billion, apportioned into lump-sum payments and a running royalty.
But there is a looming shortage of the batteries needed to power the cars. The lack of inventory could put upward pressure on battery prices, and keep the cost of EVs higher than traditional gasoline cars.
“We are pleased that SK Innovation and LG Energy Solution have settled their differences,” said Ford. “This allows us to focus on delivering a range of Ford world-class battery electric vehicles for our retail and fleet customers, while also supporting American workers, the economy and our shared goal of protecting the planet.”
President Joe Biden had until Sunday night to overrule the Trade Commission’s ruling. Politicians from Georgia, including newly elected Sen. Jon Ossoff, had been pushing to reverse the USITC decision.
“This settlement agreement is a win for American workers and the American auto industry,” Biden said in a statement released by the White House Sunday. “We need a strong, diversified and resilient US-based electric vehicle battery supply chain, so we can supply the growing global demand for these vehicles and components — creating good-paying jobs here at home, and laying the groundwork for the jobs of tomorrow.”