South Korean battery manufacturers LG Energy Solution and SK Innovation have settled and ended litigation related to electric vehicle batteries in the US and Korea, Kallanish reports.

Under the settlement agreement announced on Sunday, SK Innovation will pay LG Energy Solution 2 trillion won ($1.8 billion) apportioned into lump-sum payments and a running royalty. They’ve also agreed on a 10-year non-assertion and all pending legal disputes both in the US and Korea will be dropped.

Litigation started in April 2019 with LG Energy Solution accusing SK Innovation of committing trade secret theft by hiring its former critical staff. Earlier this year, the US International Trade Commission ruled that SK Innovation stole 22 trade secrets from LG Energy and should be banned from importing, making or selling batteries in the US market for 10 years.

That decision would hurt the US EV market development and Biden’s climate change ambitions, as well as Ford and Volkswagen, which had already inked battery supply deals with SK Innovation.  

“LG Energy Solution and SK Innovation have decided to settle to compete in an amicable way, all for the future of the US and South Korean electric vehicle battery industries,” the companies ceos said in a statement. “We are dedicated to work together to support the Biden Administration’s climate agenda and to develop a robust US supply chain.”

Jong Hyun Kim, ceo of LG Energy Solution, noted the agreement reinforces the significance of the company’s intellectual property acquired over the past 30 years, while also providing a “stable battery supply chain” for important partners including Ford and Volkswagen.

“The agreement allows the two companies to peacefully coexist in the global market and compete in good faith,” adds Kim.

US President Joe Biden said the agreement was a “win for American workers and the American auto industry.” He noted the settlement was a “positive step” towards a strong, diversified and resilient US-based EV battery supply chain, which in turn will create “good-paying jobs.”

Thanks to the deal, SK Innovation can continue to build and operate its Georgia plant undisrupted, saving some 2,600 jobs.