LG Energy Solution to License Battery Patents to Prevent Technology Infringement, Executive Announces

LG Energy Solution (LGES) is taking a bold step to combat patent infringements in the electric vehicle (EV) battery sector by launching a new business model of licensing out its battery technologies. With the surge in competition to supply EV makers, LGES, the world’s second-largest EV battery producer, is facing an increasing number of patent violations.

Lee Han Sun, head of LGES’ intellectual property center, revealed that the company has evidence of patent infringements in multiple countries, including the United States, India, and China. About 580 of LGES’ patents have been infringed, and this number is expected to rise as competition intensifies in the EV battery market.

To address this issue, LGES plans to use various patent monetization models, including forming a global patent pool and licensing out the technology in phases. This move comes at a time when global battery demand is set to weaken due to cooling EV demand, putting pressure on the margins and cashflow of battery makers.

Despite the challenges, LGES remains committed to innovation, having invested approximately $4.5 billion in battery research and development over the past decade. Lee emphasized the importance of patents in justifying the company’s investment in new products, noting that without patents, they would not be able to fund research and development efforts.

As the EV market continues to evolve, LGES is determined to protect its intellectual property and maintain its position as a leading player in the industry. By implementing new strategies to address patent infringements, the company aims to safeguard its technology and continue driving innovation in the EV battery sector.