RE: Emh12 Feb 2021 22:41
From Benchmark Major :
SK Innovation faces a decade in the cold
The United States International Trade Commission’s (ITC) decision to place a 10-year import ban on SK Innovation (SKI) risks a lithium ion battery shortage in the USA, with SKI’s first Georgia plant set to provide almost half of the country’s free market capacity by the end of 2021.
While there are exemptions to protect SKI’s existing US customers, the decision limits the supply of lithium ion cells open to the US market in the near term, but also threatens the buildout of the country’s supply chain through the 2020s.
The ITC will allow SKI to continue importing materials needed to repair EV batteries for Kia which have already been sold. It will also allow SKI to continue importing components to manufacturer lithium ion batteries for Volkswagen for two years, and for Ford for four years.
Excluding these caveats SKI will be banned from importing “certain lithium-ion batteries, battery cells, battery modules, battery packs and components” relating the trade secrets dispute with LG Chem, which could effectively end SKI’s ability to operate in the USA.
However, this saga is not over just yet as SKI has the right to appeal the ITC’s decision, LG Chem remains willing to settle, and Biden could veto the ban although this remains unlikely.