Lee & Ko Secures Unconditional Clearance for LG Energy Solution’s Acquisition of Equity Interest in Green Metal Battery Innovations

Lee & Ko represented LG Energy Solution Ltd. and LG Energy Solution Michigan Inc. (“LGESMI”) in connection with LGESMI’s acquisition of a 49% equity interest in Green Metal Battery Innovations, LLC (“GMBI”), a U.S.-based lithium-ion battery preprocessing company, and successfully obtained unconditional clearance from the Korea Fair Trade Commission (“KFTC”).

The transaction involved LGESMI acquiring its interest from Toyota Tsusho America, Inc., an affiliate of the Toyota Tsusho Group (“TTC Group”). As the TTC Group retained control over GMBI following the transaction, the KFTC reviewed the matter as a business combination between the LG Group and the TTC Group in the lithium-ion battery scrap materials market.

Although the lithium-ion battery recycling and preprocessing market has experienced rapid growth, it remains at a relatively early stage of development, and limited market data presented challenges in assessing potential competitive effects. At the same time, GMBI’s business schedule required an efficient and expedited review process.

Drawing on its in-depth understanding of the battery recycling industry and extensive experience in merger control matters, Lee & Ko effectively explained the transaction structure and relevant market dynamics to the KFTC and responded promptly to regulatory inquiries. The firm demonstrated that the transaction would not give rise to anticompetitive concerns in the Korean market, resulting in unconditional clearance within approximately three weeks (with a substantive review period of five days).