Ford’s battery problem with the F-150 Electric validates Tesla’s Roadrunner initiative

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The battle for the all-electric pickup market is yet to start, but one key player along with a possible competitor to the Tesla Cybertruck might be poised to experience some notable delays. Due to a legal dispute between LG Chem and SK Innovation, companies that take part in the development and creation of EV vehicles, vehicles like the Ford F-150 Electric might wind up having issues. 

This past year, LG Chem filed a lawsuit against SK Innovation, a rival in the electric vehicle battery market. The South Korean battery giant alleged that SK, a far smaller company, was apprehended trade secrets. In its lawsuit, LG Chem requested the courts to prevent SK Innovation from establishing a battery production center at the United States. In case LG Chem is successful, the lawsuit could result to the battery source for electric cars in the US, including the highly-anticipated Ford F-150 Electric. 

Last year, a dispute between two Korean battery-makers came to a head if LG Chem sued its smaller rival, SK Innovation, at the US for poaching its expert employees and stealing trade secretsThe ITC has mastered clearly in favour of LG Chem

— JPR007 (@jpr007) August 25, 2020

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Carmakers affected by the possible block to SK Innovation’s US growth such as Ford and Volkswagen have campaigned with the International Trade Commissions (ITC) to permit the South Korean company to go through with its projected US growth, including a battery manufacturing facility in Georgia. In an announcement to Reuters, Volkswagen phoned about the ITC to let the South Korean company make EV batteries from the US to ldquo;avoid a catastrophic disruption. ”

LG Chem, for its part, has said that it could step in and fill in the gaps that SK Innovation will leave in the US. Ford, however, notes that this proposal isn’t credible because of the short supply of base materials and growth times of EVs. It should be mentioned that LG Chem has demonstrated some challenges previously when it came to fulfilling the requirement for the EV batteries, resulting to electrical cars like the Audi e-tron. Ford added that LG Chem’s initiatives may lead to lost jobs for American workers also.  “The risk to these US occupations is especially improper in light of current economic conditions brought on by COVID-19,” Ford argued in a declaration. 

While it is unfortunate that endeavors like the Ford F-150 Electric are still in danger of being delayed because of factors which are seemingly beyond the veteran carmaker’so management, the situation highlights the importance of a committed vertical integration agency. Tesla, for example, is expected to announce its battery cell production system in the Battery Day event on September 22. Elon Musk, for his part, has proven to be quite optimistic noting that Battery Day will likely blow everybody ’s minds. 

Such projects, such as Tesla’s “Roadrunner” facility at Fremont, are still in their pilot stage, however they could be a difference-maker at the long term. By creating its own battery cell production capacities, Tesla and its vehicles like the Cybertruck will likely have the ability to weather many storms which could result from disputes between third-party battery suppliers like LG Chem and SK Innovation.

H/T @JPR007.

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