SK Innovation agreed to pay $1.8 billion USD to LG Energy Solutions in a confirmed settlement. The payment will be split between cash and royalties.
The two South Korean companies have been spatting over the last two years.
The two companies also agreed to withdraw all lawsuits in other jurisdictions. Further to this, the two companies agreed to not undertake any legal action against each other for ten years, reports Bloomberg.
The settlement will let SK Innovation avoid a ten-year US ban and import their batteries into the US without issues. This is important, as SK Innovation batteries will power the Ford F-150 electric and Volkswagen AG ID.4 SUV. Both of these vehicles would have their batteries assembled in an SK Innovation plant in Georgia.
This is a win for Ford and Volkswagen, but it is also a win for the Biden Administration as Biden officials have been dealing with both political and industry pressures to push the two sides to settle.