Toronto, Ontario — Ford Motor Co. and Volkswagen AG have warned a legal dispute between South Korea battery suppliers could threaten the automakers’ plans to start producing electric vehicles in the U.S.
The dispute is between SK Innovation Co. and LG Chem Ltd. This dispute could undermine Ford’s intention to make an electric version of the F-150 in Michigan from 2022 and VW’s efforts to build battery-powered cars in Tennessee also in 2022.
The carmakers had warned the U.S. about banning imports of components SKI needs to manufacture batteries that LG Chem says were developed using stolen secrets. VW requested that SKI be allowed to fulfill its contract to produce batteries in Georgia even if it finds that the supplier violated trade rules.
Toronto, Ontario — Ford Motor Co. and Volkswagen AG have warned a legal dispute between South Korea battery suppliers could threaten the automakers’ plans to start producing electric vehicles in the U.S.
The dispute is between SK Innovation Co. and LG Chem Ltd. This dispute could undermine Ford’s intention to make an electric version of the F-150 in Michigan from 2022 and VW’s efforts to build battery-powered cars in Tennessee also in 2022.
The carmakers had warned the U.S. about banning imports of components SKI needs to manufacture batteries that LG Chem says were developed using stolen secrets. VW requested that SKI be allowed to fulfill its contract to produce batteries in Georgia even if it finds that the supplier violated trade rules.
The U.S. is considering an order that would block SKI from importing components for its batteries. A trade judge said in February that LG Chem should be declared the winner in the dispute as punishment for SKI destroying key evidence. The trade agency is reviewing the judge’s findings, with the final decision being announced in October.
LG Chem says it will be able to fulfill Ford and VW’s battery needs, but the automakers disagree. The electric F-150 is a key aspect of the $11.5 billion investment in battery-powered vehicles that Ford has pledged through 2022. Ford announced they had decided to source batteries for SKI after meetings over several years with both of the South Korean companies.
LG Chem had supplied batteries for its electric Focus car that launched in 2012.
