Shares in South Korean auto battery maker SK Innovation Co Ltd soared on Monday after it buried the hatchet with LG Energy Solution, freeing up both firms to expand in the United States, where electric cars have become a Biden administration priority.

SK Innovation agreed to pay its rival, an LG Chem Ltd unit, 2 trillion won 1.8 billion to drop all litigation in a bitter trade secrets dispute. That was far less than expected with some estimates putting settlement costs at 7 trillion won.

Its shares rocketed 15 higher while shares of LG Chem also rose, climbing 1.

The row had threatened a 2.6 billion Georgia plant that SK is building to supply Ford Motor Co and Volkswagen AG and is seen as key to the growing industry.

SK had vowed last month to walk away from the Georgia plant if a decision by the U.S. International Trade Commission decision that favoured LG Chem was not overturned.

The settlement will enable us to accelerate the construction of the Georgia, U.S. plant and actively promote additional investment and cooperation in line with the development of the U.S. and global electric vehicle EV industry, SK Innovation CEO Kim Jun said in a message to employees seen by Reuters.

The U.S. market is important for both firms as Chinese battery makers such as Contemporary Amperex Technology Co Ltd CATL dont have a foothold. Korean firms have also found it difficult to gain ground in China the worlds biggest market for electric vehicles as Beijing has pushed policies to…