EV battery manufacturer LG Chem sues competitor SK Innovation
The Korean chemical group LG Chem, which makes batteries for EVs, among other things, has sued competing SK Innovation in the US for theft of trade secrets. SK is said to have hired former LG Chem employees who are familiar with the secrets.
According to a LG Chem press release published on BusinessWire, SK Innovation has hired 77 “extremely skilled and experienced employees who have previously worked at LG Chem.” These LG Chem employees would have been involved in research and development, production and quality assurance. The charges allege that “a significant number” of these employees stole LG Chem trade secrets to help South Korea’s SK Innovation develop and manufacture pouch-type lithium-ion batteries. LG Chem claims to be one of the largest suppliers in the market for this battery technology.
According to an internal audit by LG Chem, the employees colluded to steal trade secrets and used those secrets in negotiation talks with SK Innovation. For example, the complaining party claims to have found application letters and CVs that were written specifically for SK Innovation. As an example for these letters and resumes, LG Chem cites a LG Chem employee’s resume that was sent to SK Innovation and contained important classified information about electrode manufacturing. Some employees are also said to have downloaded 400 to 1900 ‘important technical documents’ from LG Chem’s servers before moving to SK Innovation.
Finally, LG Chem claims that SK Innovation’s contractual battery production has grown more than fourteen times since the company’s employees left at the end of 2016. LG Chem is now asking the US International Trade Commission, among others, to block the import of SK Innovation batteries and also make it impossible to import the production facilities needed to produce the batteries. Furthermore, LG Chem wants to prevent further disclosure of LG Chem’s trade secrets. LG Chem also writes that it has conducted similar lawsuits in South Korea and that it has been proved right by the South Korean Supreme Court.
At the end of last year, SK Innovation announced that it was building a battery factory in the US state of Georgia, Electrek writes. It would therefore invest approximately one and a half billion euros. The batteries would mainly be used by Mercedes-Benz and Hyundai-Kia Motors. At the time, the company did not say how many batteries it would produce and with what technology. It is therefore unknown whether this lawsuit will affect the construction of this factory.