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The
companies, LG Chem and rival SK Innovation Co, have spent months
trying to take advantage of past and promised U.S. investments,
and ties to politicians.
The Biden Administration, through the U.S. Trade
Representative's office, is set to decide as early as Friday
whether to take the rare step of reversing the U.S.
International Trade Commission (ITC), unless the Korean battery
companies reach a last-minute settlement.
The White House declined to comment on Thursday.
The ITC in February sided with LG Chem in its trade secrets
claims, but permitted SK to import components for batteries for
Ford EV F-150 program for four years, and Volkswagen's North
American EVs for two years.
Volkswagen of America CEO Scott Keogh said Wednesday Biden's
intervention was critical: "The White House could accelerate the
future of zero-emission vehicles and green jobs, or threaten to
reduce U.S. battery capacity and delay the transition to
electric vehicles."
The global auto industry is racing to develop EVs. Biden has
proposed $174 billion to boost EV sales and charging.
Unless the White House intervenes, SK says the ITC ruling would
force it to halt construction on a $2.6-billion factory in
Georgia, where two newly-elected Democratic Senators are the
linchpin of Biden's slim Democratic Congressional majority.
Last month, Republican Georgia Governor Brian Kemp urged Biden
to intervene, noting SK's plant will employ nearly 2,600:
"Simply put: the livelihoods of thousands of Georgians are now
in your hands."
Georgia Senator Jon Ossoff has held numerous meetings with the
Korean battery makers and Biden Administration, his office
confirmed, and stressed "the urgent need for both companies to
come to the negotiating table and agree to a settlement to save
the Georgia plant," a spokeswoman said.
LG's battery unit LG Energy Solution is nearing completion of an
Ohio cell manufacturing plant with General Motors and is close
to announcing plans build a $2.3 billion second facility in
Tennessee, sources told Reuters.
LG plans to invest at least $4.5 billion in U.S. battery
production over the next four years. LG insists it can handle
automakers battery needs if SK abandons its Georgia plant.
SK argues LG could not handle VW and Ford contracts and warns
Chinese manufacturers may replace lost battery capacity.
(Reporting by David Shepardson; Michael Perry)
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