LG Energy Solution triumphs in German court case concerning patent infringement by Sunwoda (China)
In a significant development for the electric vehicle (EV) battery industry, the Munich District Court in Germany has ruled in favour of LG Energy Solution in a patent infringement lawsuit against Sunwoda Group. The court found that Sunwoda's prismatic battery, supplied for the Renault Group's electric vehicle Dacia Spring, infringed LG Energy Solution's patented electrode assembly structure technology.
The ruling imposes immediate and substantial operational restrictions on Sunwoda’s European EV battery sales, particularly in Germany. The court ordered a sales ban on the infringing batteries in Germany, recall and destruction of any remaining inventory, disclosure of accounting records, and compensatory damages to be paid to LG Energy Solution.
This decision is part of a series of patent enforcement actions by LG Energy Solution, which has already won two prior cases against Sunwoda in Germany. The first sales ban in the German EV market, a significant milestone, was a result of these earlier injunctions.
The technology at the heart of the dispute involves an integrated electrode assembly with coated separators. This innovation improves the durability, cohesion, safety, and electrical performance of EV batteries, making it crucial for high-power, high-capacity EV batteries.
The sales ban in Germany, one of Europe's largest EV markets, directly limits Sunwoda's ability to sell the infringing prismatic batteries there. The recall and destruction order for remaining inventory results in financial losses and disrupts supply chains to European customers. The damages and accounting disclosures may further burden Sunwoda financially and constrain its operations.
Sunwoda, a significant player in the global battery market, supplies batteries to major automakers, including Geely Auto, Renault Group, Nissan, and Dongfeng Motor. The company specializes in lithium-ion batteries for EVs and ESS and ranked No. 10 globally in market share last year, according to SNE Research.
LG Energy Solution, the parent company of LG Chem, has noted that it is committed to leading a fair, competitive environment by contributing to establishing a global battery patent licensing market. The company is taking a firm stance against the prevalent 'patent free riding' in the industry and is committed to pursuing legal action and issuing warnings against unauthorized patent use.
This ruling is likely to affect Sunwoda’s prospects broadly across Europe, as it signals a stricter environment for patent compliance in the European battery market. Sunwoda retains the right to appeal the ruling, but if it does not, it will be immediately prohibited from selling the infringing batteries in the region, required to recall the products, and forced to pay damages to LG Energy Solution.
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- This court decision could potentially have far-reaching implications for Sunwoda in the global battery market, as it sets a precedent for stricter patent compliance in the European energy industry, particularly in the technology sector.
- The ruling against Sunwoda may inflict substantial financial losses due to the recall and destruction of prismatic batteries, disrupt supply chains, and impact Sunwoda's ability to supply major automakers, such as Geely Auto and Renault Group, given the significant presence of these batteries in Europe's finance and energy sectors.
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