TAPP Urges Biden to Protect IP Regarding Electric Vehicle Battery Production in Georgia

As TAPP wrote in an earlier blog post, in the quest to attract investment from foreign and domestic corporations, the State of Georgia has become a home for Electric Vehicle-related manufacturing. In 2019, SK Innovation (SKI), an Electric Vehicle (EV) battery manufacturer and subsidiary of a South Korean global conglomerate, broke ground in Jackson County, Georgia, on a $1.67 billion manufacturing plant to produce batteries for Ford and Volkswagen, with a promise of creating 2,000 jobs. Shortly after this initial investment, SKI announced an additional investment of approximately $940 million for expansion of the plant and the creation of an additional 600 jobs for local Georgians.

While seemingly well intentioned, promises of new jobs, economic benefits, and a new manufacturing hub came with a much darker side: Multiple revelations have cast a light upon SKI’s suspect and at times illegal business tactics. Regrettably, Georgia, Ford, and Volkswagen have found themselves entangled with a bad-faith actor.

The situation is this: Several years ago, LG Chem, now LG Energy Solution, a subsidiary of a rival South Korean global conglomerate, accused SKI of stealing trade secrets from LG’s lithium-ion battery technology and then leveraging them to secure lucrative contracts with Ford and Volkswagen. The United States International Trade Commission (ITC), home of the lawsuit, sided with LG, issuing a preliminary default judgement against SKI citing substantial intellectual property (IP) violations. Investigations into these accusations found that SKI would actively attempt to hire former LG engineers with the promise of employment should they provide trade secrets. Investigations also discovered SKI’s attempt to cover up evidence by destroying more than 34,000 files and emails.

Now, according to a recent news report, SKI is appealing to President Biden for special treatment: SKI is asking the President to set aside the ITC’s judgement. Indeed, even more than that, SKI is using strong-arm tactics and threatening to stop work on its promised factory in Jackson County and to leave the country unless President Biden sides with them. Biden has until April 11 to reverse the ITC’s decision.

For the good of the State of Georgia and innovators across the globe, TAPP is urging President Biden to send a clear message of upholding IP protections and ensuring that SKI suffers the consequences of doing business improperly and illegally.

Watch the FOX 5 Atlanta news story about the issue here.