LG Energy Solution wins patent case against China's Sunwoda over battery technology

LG Energy Solution won a patent infringement case in Germany against China’s Sunwoda, marking the Korean battery maker’s first legal success following its declaration last year to aggressively pursue "patent freeloaders."

LG Energy Solutions' battery factory in Wrocław, Poland, is seen on Dec. 8, 2023. [LG ENERGY SOLUTION]

LG Energy Solution won a patent infringement case in Germany against China’s Sunwoda, marking the Korean battery maker’s first legal success following its declaration last year to aggressively pursue "patent freeloaders."

Attention is being paid to whether the domestic battery industry can block China’s overseas market expansion using patents as a weapon.

On May 22, the Munich District Court ruled in favor of Tulip Innovation, a Hungarian non-practicing entity representing LG Energy Solution in the dispute, in its application for an injunction on battery sales against Sunwoda Group, according to industry sources on Thursday.

Sunwoda Group is a company ranked in the top 10 in terms of global battery market share. The German court ruled that the company infringed on two of LG Energy Solution’s separator technology patents and ordered to ban the sale of Sunwoda batteries using this technology in Germany.

The court also ordered Sunwoda to recall and destroy the remaining infringing batteries and to pay damages to Tulip Innovation. Separators, which are placed between the cathode and anode in lithium-ion batteries, are one of four core components, alongside the cathode, anode and electrolyte.

This ruling represents the first-ever injunction granted in Germany in relation to electric vehicle (EV) battery technology, according to Tulip Innovation, and is likely to serve as a key precedent in ongoing battery-related patent disputes between Korea and China.

Sunwoda is expected to appeal the decision, according to reports. The Chinese company separately filed lawsuits in Germany seeking to invalidate the two patents in question.

LG Energy Solution employees are seen at a laboratory in this file photo provided by the company [LG ENERGY SOLUTION]

“We are confident that this ruling will be upheld in the appeal,” Tulip Innovation said.

The case comes amid intensifying global patent battles in the battery sector, fueled by fierce competition between Korean and Chinese companies amid a temporary slump in EV demand.

LG Chem, LG Energy Solution’s parent company, is also pursuing a separate cathode material patent lawsuit in Korea against Chinese materials supplier Ronbay.

Korean battery makers have increasingly turned to intellectual property rights to fend off what they view as unauthorized use of proprietary technologies by Chinese competitors expanding abroad.

LG Energy Solution alone holds around 1,000 “strategic patents” — patents it believes are likely to be infringed by rivals — of which 580 have already been confirmed as actually infringed.

The company hopes that leveraging its patent portfolio can not only block competitors but also help establish a licensing business, laying the groundwork for future revenue streams.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff. BY CHOI SUN-EUL [lim.jeongwon@joongang.co.kr]