Korean battery giants take legal action against Chinese firms

LG Chem has recently taken legal action against Ningbo Longbai, a Chinese company specializing in battery cathodes. It alleges that Longbai has copied its cathode manufacturing technology, thereby infringing on its patents. The cathode, a critical component that constitutes 50% of the cost of electric vehicle batteries, is at the center of this dispute. LG Chem has filed a lawsuit seeking damages amounting to 600 million won.

According to industry sources on Tuesday, there have been over 1,000 instances where foreign companies have allegedly stolen or copied patents from South Korean battery manufacturers such as LG Energy Solution, Samsung SDI, and SK On. LG Energy Solution alone has identified more than 600 cases of patent infringement. When including material companies such as POSCO Future M and EcoPro, the number of violations surpasses 1,000, with Chinese firms being the primary offenders.

The motivation behind these infringements stems from the difficulty in meeting global standards without leveraging Korean technology. As per the Korean Intellectual Property Office, by the end of last year, LG Energy Solution had filed 23,034 patent applications, significantly outpacing China's leading company, CATL, which filed 5,420 patents. Korean battery firms hold approximately five times more patents than their Chinese counterparts, securing their position as global leaders in this field. A senior executive from one of the top three battery companies remarked, "Until now, we have issued warnings to foreign companies to 'pay a fair price,' but moving forward, we intend to pursue legal action more aggressively."


박현익 기자 beepark@donga.com