LG Energy Solution and SK Innovation, two South Korean battery makers, have reached a $1.8 billion settlement in their two-year-long legal dispute over battery technologies in the U.S.

The agreement was reached at the last minute, just before the deadline for an import ban on SK, following the U.S. International Trade Commission's issuance of a ten-year import ban on SK.

Although the two rivals have had previous conflicts over batteries, this is their biggest and most high-profile to date.

The settlement sum is also considered to be the highest of any global trade secret dispute, with pundits seeing it as reflecting the industry's potential growth value while also recognizing the importance of intellectual property rights protection.

According to the terms of the settlement, SK will pay $890 million in cash and another $890 million in royalties to its competitor as compensation for stealing LG's crucial battery technology. In exchange, LG decided to abandon all legal action against SK, both domestically and internationally.

In a joint statement, the two companies said that they have agreed to compete fairly and collaborate amicably for the growth of South Korea's and the U.S.' battery industries.

Both players have proven their worth in the U.S. and are expected to benefit from the expansion of the EV market under Biden's presidency. According to Goldman Sachs, EV supply in the U.S. will reach 2.4 million by 2025, up from 300,000 last year. By 2030, the figure will be 4.8 million units, and by 2023, it will be 8 million units.

The settlement was widely welcomed by President Joe Biden, who hailed it as a win for American workers and the U.S. auto industry.

"This settlement agreement is a win for American workers and the American auto industry," Biden said in a statement released by the White House Sunday.