Disrupting the Industry: Korean Battery Suppliers at Each Other's Throats
While the automotive industry continues cleaning itself up via electrification and moral corporate messaging, most aspects of doing business have remained decently dirty. For all this striving for a utopian society, businesses still don’t like losing money and will go to great lengths to screw over the competition.
South Korean battery suppliers SK Innovation and LG Chem are currently clawing at each other like a couple of mad tigers. SK managed to secure a contract to supply Volkswagen Group with EV batteries, leading to the construction of a $1.7 billion factory in Georgia. LG did not, leading to a lawsuit. Both automakers and analysts are worried the litigation is spinning out of control, and could effectively obliterate their ability to do business in the United States.
Honda, Toyota and BMW Caught Up in U.S. Patent Violation Probe
The United States will look into components employed by some Japanese and German automakers to see if any vehicle models sold in the country violate patent laws. Probes will be conducted into 25 automakers and parts suppliers by the U.S. International Trade Commission, including Honda, Toyota, and BMW, as well as popular Japanese parts suppliers Aisin and Denso.
Intellectual Ventures II filed a complaint in March alleging thermoplastic parts used in motors, power steering units, water pumps, and other drivetrain components were being implemented in vehicles without its knowledge. It believes the companies are infringing on its patent rights and have reached out to the Trade Commission to conduct an investigation.