LG Energy Solution wins patent battle with China's Sunwoda, seals licensing deal

LG Energy Solution has resolved its patent dispute with Chinese battery manufacturer Sunwoda, closing a two-year legal battle by signing a licensing agreement after a string of court victories.

Tulip Innovations — the patent management firm that handles licensing on behalf of LG Energy Solution and Panasonic — and Sunwoda issued a joint statement Thursday saying the two sides had signed a licensing agreement and would withdraw all pending legal proceedings in Germany, China and South Korea. The deal, they said, "resolves all issues" relating to LG Energy Solution and Panasonic Energy battery technology involving Sunwoda and its customers.

As a result, LG Energy Solution is expected to drop its requests in South Korea for unfair trade investigations into vehicles equipped with Sunwoda batteries, including the Volvo Korea EX30 and the Renault Grand Koleos.

Founded in 1997, Sunwoda is a Chinese lithium-ion battery specialist that has recently ranked among the top 10 electric vehicle battery makers globally by market share, according to research firm SNE Research.

The two sides said all terms of the agreement would remain confidential.

The settlement is widely seen as a victory for LG Energy Solution in its patent campaign against Sunwoda. LG Energy Solution had filed suit after accusing Sunwoda and other latecomers of using its proprietary technology without proper licensing agreements.

LG Energy Solution sued Sunwoda for infringing multiple strategic patents, including an electrode assembly structure patent (EP 2378595 B1). Last year, a German court ordered a sales ban on batteries incorporating the technology, along with the recall and destruction of remaining inventory and damages. German courts issued sales bans on two additional European patents as well, giving LG Energy Solution three consecutive wins.

LG Energy Solution and Tulip Innovations said they plan to continue expanding patent licensing negotiations in the global battery market and will pursue infringement litigation against any future violations. As of the end of March, LG Energy Solution held the world's largest battery patent portfolio — 56,453 registered patents and 97,752 pending applications.

"This agreement confirms the principle that companies dedicated to technological innovation deserve fair compensation," LG Energy Solution said. "As an 'Original Innovator' that has driven the growth of the battery industry, LG Energy Solution will lead the way in building a healthy industrial ecosystem where all companies can compete on a level playing field."