The U.S. International Trade Commission (ITC) on Thursday criticized Ford Motor for pursuing battery contracts with SK Innovation after evidence had emerged the South Korean electric vehicle (EV) battery maker misappropriated trade secrets from rival LG Chem.
The ITC last month sided with LG Chem in its trade secrets claims, issuing a limited 10-year exclusion order banning imports into the United States of lithium-ion batteries by SK Innovation (SK). It allowed SK to import parts for domestic production of batteries for Ford’s EV F-150 program for four years, and for Volkswagen of America’s MEB electric vehicle line for North America for two years.
In a redacted version of its full 96-page opinion Thursday, the ITC questioned why Ford had continued to pursue battery contracts with SK Innovation “after SK’s misconduct in this investigation had come to light”.
It said the automaker had sought business with SK even after a company worker in November 2019 was deposed in the commission’s investigation and at a time when it only had a contract with SK to provide batteries for the EV F-150.
“There is no explanation in the record why Ford would choose to ignore or excuse SK’s egregious misconduct,” the ITC added. “The fault here belongs with SK, as well as with those, like Ford, who deliberately chose to continue to cultivate prospective business relationships predicated on SK’s trade secret misappropriation.”
The ITC also turned down Ford’s request to extend exemptions to Ford’s unannounced new electric vehicles.
“Ford’s basis for extending the exemption is to take advantage of economies of scope by using similar SK batteries with misappropriated technologies across several unnamed vehicles,” it said. “The commission finds the evidence concerning the public interest does not support Ford’s request.”
