The United States is one of the most popular countries regarding electric vehicles transitioning to becoming permanent on the roads. President Biden’s administration has been working on several projects hoping to make changes in the environment. However, you can tell that the plans have been put to the test from the recent report. In addition to that, it involves electric vehicles’ biggest support chain, batteries.
The country’s International trade commission is causing problems to President Biden’s electric vehicles project. This commission is restricting a key battery manufacturer from importing hardware. Despite how the electric vehicle plans are moving forward, this restriction is certain to cause issues as the country struggle to manufacture emission-free cars.
USA International Trade Commission is an independent agency that doesn’t work under the influence of others. Recently, the agency ruled out the SK innovation battery maker. The matter in question involves the legitimacy of the methods the company uses to create its batteries. Various claims indicate that SK Innovation has been working on their batteries while plagiarizing trade secrets from LG Chem. Besides, the secrets were stolen, which did not settle well with their biggest competitor.
This fight between the corporate giants from South Korea may have a negative impact when it comes to the US automakers. The situation is critical right now since the country is trying to achieve net-zero emissions in the transportation industry. Despite the ITC agency report, President Biden will face a challenging situation. Why not when he has to decide whether the decision from the agency will move forward or not.
From a report, ITC claims that it is trying to follow the rules by reprimanding the SK battery makers without crippling the transition process. According to the regulations, SK Innovation will be unable to import lithium-ion batteries and other hardware for a timeline of ten years. However, there are exceptions in this case. But the agency is considerate enough to give Volkswagen and Ford a chance to look for new batteries’ sources. SK Innovation is still power enough to deliver batteries for the two companies in the agency’s report. Ford and Volkswagen can get assistance from the company for four years and two years, respectively.
Volkswagen didn’t make a statement on the matter, but Ford’s spokesperson claimed that it supports electric vehicles and is their current top priority. LG Chem’s Chief executive, Jong Hyun Kim, praised ITC for upholding justice.
On the other hand, SK innovation talked of negotiating with Ford and Volkswagen on the matter. Also, the company is hoping to appeal to President Biden’s administration for relief. The white house is expected to state the case soon and the way forward for Ford and Volkswagen.