...HONG KONG (S&P Global Ratings) June 24, 2021--S&P Global Ratings said today that SK Innovation Co. Ltd.'s (SKI; ###-/Negative/--) settlement of its long-running legal dispute in the U.S. relating to electric vehicle (EV) batteries has eased downside risks to some extent. However, the settlement amount places a heavy financial burden on the South Korean battery maker. On April 11, 2021, SKI agreed to pay its Korean rival LG Energy Solution Ltd., the battery production arm of LG Chem Ltd. (###+/Stable/--), Korean won (KRW) 1 trillion in settlement money and KRW1 trillion in royalties over the next few years. Terms have not been finalized and are subject to approval from the board of directors. The settlement amount is slightly higher than, but broadly in line with, our expectation. We also anticipate the payment schedule will be arranged to minimize the impact on cash flows. More importantly, SKI is now free from uncertainty in the U.S., where the company made aggressive investments recently....
