Written by Yang Hee-kyung
SEOUL (Reuters) – LG Energy Solutions said on Wednesday it will launch a new business model next month to license out battery technology, as patent infringements by South Korean companies soar in the race to supply electric car makers. LGES, the world’s second-largest EV battery producer after China’s CATL, is also considering issuing warning notices or filing lawsuits against companies suspected of infringing its patents. LGES Intellectual Property Center Director Lee Hanson said in an interview. “Over the past few years, countless generic companies have emerged in the EV battery space around the world, resulting in increased price competition and patent infringement,” Lee said. Mr Lee said LGES has evidence of patent infringement in many countries, including the US, India and China. Although he did not name the companies involved, he claimed that approximately 580 of LGES’s patents had been infringed, and that the number of violations could rise further. LGES, which supplies batteries to automakers including Tesla, General Motors and Volkswagen, said in a statement Wednesday that it has patents on a wide range of technologies, including its cylindrical battery manufacturing process, electrolytes for high-nickel batteries, and silicon anode technology. said it had been compromised. LGES said it plans to utilize various patent monetization models by forming a global patent pool, aggregating patents believed to be infringed, and licensing technology in stages. According to the International Energy Agency, demand for EV batteries will reach more than 750 gigawatt hours (GWh) in 2023, a 40% increase compared to 2022. However, global battery demand is expected to weaken sharply this year as EV demand cools, putting pressure on the profits and cash flow of many battery manufacturers. Tesla announced earlier this month that its quarterly EV deliveries fell for the first time in nearly four years. Legacy automakers are cutting back on investments in EVs and doubling down on investments in gas-powered vehicles as consumer demand returns to more affordable options. Lee said he has seen rival companies that were infringing on LGES’ technology win battery supply orders by offering lower-priced products. “Without a patent, you can’t justify spending a lot of money on a new product,” Lee said. “There was a time when we had to spend a lot of money (on research and development). For example, about 20 to 30 percent of our sales were spent on research and development of lithium-ion batteries.” LGES announced that it has spent approximately $4.5 billion on battery research and development over the past 10 years.
(Reporting by Hee-kyung Yang; Editing by Mi-young Kim, Richard Chan and Lisa Shoemaker)
