The electric vehicle (EV) battery industry has seen significant patent litigation since 2015, driven by the rapid expansion of the market and the high stakes involved in securing intellectual property (IP) rights. Major disputes have emerged between original equipment manufacturers (OEMs) and suppliers, often centering on core battery technologies such as electrode materials, separators, and thermal management systems. These cases have resulted in high-profile settlements, injunctions, and licensing agreements, shaping the competitive landscape of the EV battery sector.

One of the most notable cases involved SK Innovation and LG Chem, which later became LG Energy Solution. The dispute began in 2019 when LG Chem accused SK Innovation of stealing trade secrets related to lithium-ion battery technology, including critical separator and electrolyte formulations. LG Chem alleged that SK Innovation had hired former LG employees who brought confidential information with them, enabling SK to accelerate its battery development. The U.S. International Trade Commission (ITC) ruled in favor of LG Chem in February 2021, imposing a 10-year import ban on SK Innovation’s batteries for certain EV models. However, the two companies reached a last-minute settlement in April 2021, with SK Innovation agreeing to pay LG Energy Solution $1.8 billion in cash and royalties. The settlement allowed SK Innovation to continue supplying batteries to Ford and Volkswagen in the U.S., albeit with restrictions on future trade secret violations.

Another significant case involved Tesla and a supplier over battery management system (BMS) technology. In 2017, Tesla was sued by a Canadian startup, claiming infringement of patents related to thermal management systems for battery packs. The startup alleged that Tesla’s cooling technology, which used a proprietary coolant design to regulate battery temperature, violated its IP. The case was settled out of court in 2019, with Tesla agreeing to an undisclosed financial arrangement. While the specifics of the settlement were not publicized, the case highlighted the importance of thermal management innovations in EV batteries and the potential for litigation when companies develop similar solutions independently.

Ford Motor Company also faced patent litigation related to EV batteries. In 2020, a U.S.-based battery technology firm sued Ford, alleging that its hybrid and electric vehicles infringed on patents covering electrode compositions and cell assembly methods. The plaintiff sought damages and an injunction against Ford’s use of the disputed technology. The case was resolved in 2022 with a licensing agreement, allowing Ford to continue using the technology while compensating the patent holder. This outcome underscored the prevalence of cross-licensing deals in the industry as a way to avoid protracted legal battles.

In Europe, a dispute arose between two major battery manufacturers over cathode material patents. A German company accused a French competitor of infringing on its patents for high-nickel cathode formulations, which are critical for achieving higher energy density in EV batteries. The case, filed in 2018, went through multiple rounds of litigation before the European Patent Office (EPO) ruled in favor of the German firm in 2021. The French company was required to pay royalties and modify its production processes to avoid further infringement. This case demonstrated the global nature of patent disputes in the battery sector, with companies filing suits in multiple jurisdictions to protect their IP.

A separate but equally impactful case involved a Chinese battery manufacturer and a Japanese materials supplier. The Japanese firm alleged that the Chinese company had copied its patented separator technology, which was designed to enhance battery safety by preventing thermal runaway. The lawsuit, filed in 2016, resulted in a Chinese court ruling in favor of the Japanese supplier in 2019, ordering the defendant to cease production of the infringing separators and pay damages. This case highlighted the growing sophistication of China’s IP enforcement mechanisms and the willingness of courts to rule against domestic companies in cases of clear infringement.

In another instance, a U.S. battery startup sued a major automotive OEM for allegedly using its patented fast-charging technology without authorization. The startup claimed that the OEM’s EVs incorporated its IP related to charging algorithms that reduce degradation during high-power charging. The case, filed in 2020, was settled in 2023 with the OEM agreeing to a licensing deal and future collaboration on battery technology development. This outcome reflected a trend of litigation leading to partnerships, as companies seek to leverage each other’s expertise while resolving IP conflicts.

The outcomes of these cases have had broader implications for the EV battery industry. Settlements and licensing agreements have become common strategies to avoid disruptive injunctions, while court rulings have reinforced the importance of robust IP portfolios. Companies are increasingly investing in defensive patent strategies, filing patents across multiple jurisdictions to deter litigation and secure their market positions. Additionally, the rise of trade secret cases, such as the SK Innovation vs. LG Energy Solution dispute, has prompted firms to tighten internal controls and employee agreements to prevent leaks of sensitive information.

The EV battery patent landscape remains highly dynamic, with new disputes likely to emerge as technologies evolve and market competition intensifies. Key areas of ongoing litigation include solid-state batteries, silicon anodes, and advanced manufacturing techniques. Companies are also paying closer attention to design-around strategies, where they develop alternative technologies to avoid infringing on competitors’ patents while maintaining performance standards.

In summary, patent litigation in the EV battery sector since 2015 has been marked by high-stakes disputes between OEMs and suppliers, with outcomes ranging from injunctions to settlements. These cases have shaped industry practices, emphasizing the need for strong IP protection, cross-licensing agreements, and proactive measures to safeguard trade secrets. As the demand for EVs continues to grow, patent disputes will remain a critical factor in determining which companies lead the market and which face legal and financial setbacks.