Two South Korean battery makers are embroiled in a patent violation spat.
LG Chem sued SK Innovation, seeking KRW100m in compensation, claiming a violation of its patented pivotal car battery function, which it calls the safety-reinforced separator (SRS) technology.
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The stakes for LG Chem and SK Innovation are higher than the amount of damages indicates, according to the Korea Times.
“LG Chem is supplying lithium-ion batteries with SRS-oriented technology to leading overseas companies such as Motorola, Sony-Ericsson, Hewlett-Packard (HP) and Lenovo of Taiwan. The products have also been used in hybrid vehicles by Hyundai Motor Group,’’ an LG Chem spokesman said.
The technology is fitted to increase the safety of the lithium-ion battery for electric cars.
The LG Chem spokesman claimed that the LG patents will also be used in upcoming electric cars by General Motors (GM), Renault, Volvo and Ford.
LG Chem officials believe that SK Innovation has copied the patents without paying for royalties to raise its battery profile with leading carmakers.
SK Innovation has rebutted the claim.
“Batteries for electric vehicles are SK’s core next-growth engine and SK has already secured related patents to effectively push the business,’’ said an SK executive, asking not to be identified.
SK Innovation plans to take “proper action”. Its has patented its LiBS technology, which is also crucial to guarantee the safety of electric vehicles.
SK Innovation is a key supplier for lithium-ion batteries for Mitsubishi, the Daimler Chrysler Group as well as Hyundai Motor and Kia Motors, according to SK officials.
“I can say the fight is a kind of power game as the market for rechargeable batteries for electric vehicles is growing rapidly. SK Innovation aims to break down LG Chem’s initial lead in the market, while LG Chem is being tasked to secure its bottom line,’’ said a high-ranking LG executive, requesting anonymity.
LG Chem has completed the world’s largest lithium-ion factory, followed by SK Innovation, according to officials.
Market research firm IIT expects the combined market share by South Korean lithium-ion producers to rise to over 40%, enough to take the biggest national share in the world, topping Japan.
