On January 26, 2026, Tulip Innovation Kft. announced that its patent infringement investigation targeting Chinese battery manufacturer Sunwoda and its client Geely Auto Group, initiated in South Korea, has been formally accepted by the Korea Trade Commission (KTC), showing Tulip patent pool's expansion into core Asian markets after three consecutive legal victories in Germany. Moreover, it also reveals a clear strategic intent: Japanese and South Korean companies, spearheaded by LG New Energy and Panasonic Energy, are building high-barrier, strongly enforceable patent pools to execute a systematic layout and expansion during critical window for reshaping the global power battery industry landscape.

1. Tulip Patent Pool's global litigation strategy - from Budapest to Seoul

The Tulip patent pool consolidates over 5,000 patents and 1,500 patent families from LG Energy Solution and Panasonic Energy, including core technologies of power batteries such as electrode materials, battery structures, and separator technology.  Its clear core objective behind these is to offer licensing to all lithium-ion battery manufacturers but to impose a full-chain attack against those who refuse to pay, suing not only battery manufacturers but also vehicle manufacturers using unauthorized batteries.

In 2025, Tulip secured three consecutive victories in the Munich Regional Court in Germany, successfully obtaining three injunctions against Sunwoda, setting a precedent in Germany for sales bans on automotive power batteries. Now, it has turned its attention to the South Korean market, accusing Sunwoda's battery cells and the battery packs used in Geely's hybrid SUVs of infringing its "electrode-separator assembly" technology based on South Korean patent KR10-1089135 (corresponding to European patent EP2378595B1). The technology, classified as a fundamental patent, is directly related to battery safety and thermal stability.

Obviously, Tulip's enforcement is no longer limited to a single jurisdiction. Instead, it uses multi-country joint litigation to force enterprises into a passive situation where "being banned in one place leads to and restrictions globally," thereby forcing them to accept licenses.

2. Tulip Patent Pool – The “Second Battlefield” of Global Competition

Behind the background of a dramatically reshaping global landscape for power battery installations, Tulip patent pool’s rise is driven by profound strategic motives. According to data from SNE Research, from January to November 2025, Chinese companies occupied 6 of the top 10 spots in global electric vehicle battery installations, holding a combined market share of 69.4%. Though LG Energy Solution still ranked third, it has been significantly surpassed by CATL and BYD with its market share continuing to shrink, its overall performance lags notably behind its Chinese counterparts.

Faced with the comprehensive acceleration of Chinese companies in cost control, capacity expansion, and technological innovation, Japanese and South Korean companies have shifted their strategic focus towards the intellectual property area, attempting to rebuild their competitive advantage through patent barriers.

The Tulip patent pool emerged precisely at this opportune moment, its establishment clearly indicates the following three strategic considerations:

(1) Market competition defense

Based on a "license + litigation" model, Tulip has built a rapid response mechanism. Once a company refuses to accept the license, it initiates lawsuits in key markets like Germany and South Korea, using injunctions to create pressure that cut off its supply chain or terminal sales, effectively forming non-tariff trade barriers.

(2) Technological iteration barriers

Tulip's patent pool is highly concentrated on core technologies that are difficult to replace, such as electrodes, separators, and electrolytes. For example, the electrode and separator-related patents it claims directly impact battery energy density and safety performance. Companies need to redesign their technological circumvention routes if they attempt to circumvent these barriers, which is costly and time-consuming. This effectively slows down the pace of competitors' technological catch-up.

(3) Maximization of IP assets value

For LG Energy Solution and Panasonic Energy, a large number of patents resulting from early-stage R&D are gradually entering the later phases of their life cycle. For example, the invention patent (KR10-1089135) involved in the lawsuit in South Korea is expected to expire in 2029. Through centralized operation via Tulip, these "assets" are activated as sources of licensing revenue and compensation, achieving the capitalization of intellectual property.

3.The Patent war is an industrial war

Until now, several China’s power battery and materials companies, including Sunwoda, COSMX, BAK Power Battery, and Ronbay Technology, have faced patent lawsuits initiated by Tulip or LG-affiliated companies. Zhuhai Guanyu and BAK Power have reached a settlement, while Sunwoda is still fighting the lawsuit facing the risk of a substantial blockade from the German market.

It's worth noting that Sunwoda, COSMX, and BAK Power Battery, the Litigation targets chosen by Tulip, are not among the top 10 in global power battery installers in 2025. The current action, naming both Sunwoda and its client Geely Auto as defendants, further highlights the strategic intent. It not just aims to attack the battery manufacturer but also to send a clear warning to vehicle manufacturers.

The rapid rise of the Tulip patent pool signifies that global competition in the power battery sector has fully escalated from a battle over production capacity and costs to a struggle for dominance in intellectual property rights. Japanese and South Korean companies are attempting to rebuild global market boundaries using IP and legal means based on a patent "moat" built upon decades of technological accumulation. For relevant Chinese companies, it’s not only a severe challenge but also a crucial opportunity to accelerate the construction of an independent IP system and enhance global compliance capabilities.

From AutoIP

January 28th, 2026