SK Innovation, one of North Georgia’s largest employers, can continue to operate its Jackson County facility after it reached a deal with a rival company, according to a report from the Atlanta Journal-Constitution.
This comes after the U.S. International Trade Commission ruled in February that alleged SK Innovation had stolen trade secrets related to the production of lithium-ion batteries from LG Chemical, Ltd. LG first brought the accusations against SK in 2019.
According to the AJC, SK and LG reached an agreement that settles all legal disputes over the alleged theft of trade secrets. The AJC says the agreement covers both a ruling by a federal panel and related litigation in federal courts.
Georgia Governor Brian Kemp released a statement on the agreement Sunday morning, thanking both companies for their work to reach the deal.
"I have personally participated in countless meetings, calls, and other conversations to make sure this project and the 2,600 expected jobs continued to move forward," Kemp said. "I want to offer a special thank you to local leadership in Jackson County and the city of Commerce, our incredible partners with the government of South Korea both here and in Seoul, as well as the Office of the United States Trade Representative for assisting the two companies through the settlement negotiations process."
President Joe Biden also released a statement, calling the deal a win for both workers and the American auto industry.
"We need a strong, diversified and resilient U.S.-based electric vehicle battery supply chain, so we can supply the growing global demand for these vehicles and components," Biden said. "Today’s settlement is a positive step in that direction, which will bring some welcome relief to workers in Georgia and new opportunity for workers across the country."
The International Trade Commission originally ruled that SK could only make batteries in the state for a limited time before it must stop importing the parts required for the manufacturing process.
Several days prior to the AJC report, Kemp issued a statement calling for Biden to intervene and overturn the ITC ruling on SK Innovation.
SK currently operates one facility in Jackson County, but a second facility is under construction and expected to begin operation in 2023. SK Innovation will have the capacity to produce batteries for 310,000 electric vehicles per year once both facilities are operational.
Georgia Senator Raphael Warnock also applauded the agreement, saying he had expressed his concerns about the plant's potential closure to the Biden administration.
"I have spoken repeatedly to senior leaders at the companies, as well as numerous officials in the Biden Administration about the value of the Commerce factory, both to the local economy and the critical effort in Georgia and across our country to reduce pollution and strengthen environmental sustainability," Warnock said in a release Saturday night. "I’m glad that all the parties involved listened and that the community of Commerce got the decision they hoped for, which will help keep the local economy moving forward."
The company also plans to hire more than 2,000 people as part of that expansion.
The two facilities will occupy land in the Commerce 85 Business Park in Jackson County.
