NewKerala.com

SK On Cuts 1,000 US Jobs as EV Demand Slows, Hits Georgia Battery Plant

SK On, a major South Korean battery maker, has laid off nearly 1,000 workers at its US plant in Georgia, representing about 37% of the facility's workforce. The company cites slowing electric vehicle demand and the need for operational restructuring as the primary reasons for the cuts. The Georgia plant supplies batteries to automakers like Volkswagen, Hyundai, and previously for Ford's F-150 Lightning. Despite the layoffs, SK On continues construction on a second battery plant in Georgia and has another facility planned for Tennessee.

Key Points: SK On Lays Off 1,000 at US Battery Plant Amid EV Slowdown

  • 968 layoffs at Georgia plant
  • 37% of facility's workforce cut
  • Slow EV sales drive restructuring
  • Plant supplies VW, Hyundai, Ford
  • Second Georgia plant still underway
2 min read

SK On lays off nearly 1,000 workers at US battery plant amid EV slowdown

SK On dismisses 968 workers at its Georgia EV battery plant, citing slowing electric vehicle sales and market restructuring. Details inside.

"The workforce reduction was part of restructuring efforts prompted by slowing EV sales and changing market conditions. - SK On"

Seoul, March 7

SK On, a major South Korean battery manufacturer, has laid off nearly 1,000 workers at its US battery plant in Georgia amid slowing electric vehicle demand, a company filing showed on Saturday.

SK Battery America, SK On's US unit, dismissed 968 employees at its battery manufacturing facility in Commerce, Georgia, according to a Worker Adjustment and Retraining Notification (WARN) notice posted on a Georgia state website.

The layoffs reportedly account for about 37 per cent of the plant's total workforce of around 2,500 employees, reports Yonhap news agency.

The company said the workforce reduction was part of restructuring efforts prompted by slowing EV sales and changing market conditions. The decision was also made to adjust operations while maintaining its commitment to the state of Georgia and efforts to build a strong U.S. supply chain for advanced battery manufacturing.

The Georgia plant has been supplying EV batteries to automakers including Germany's Volkswagen and South Korea's Hyundai Motor. It also supplied batteries for Ford Motor's F-150 Lightning electric pickup truck, though profitability was affected after Ford canceled production plans for the model.

SK On is currently building a second battery plant in Georgia to supply batteries to Hyundai Motor, with production scheduled to begin in the first half of this year. Another plant in Tennessee is expected to begin production in 2028.

In October last year, Governor Brian Kemp of the state of Georgia met with the head of South Korean battery maker SK On to discuss ways to enhance cooperation and strengthen business ties.

Kemp and his delegation visited SK On's headquarters in central Seoul earlier in the day and had talks with Lee Seok-hee, chief executive officer (CEO) of the Korean battery manufacturer, according to the sources. The two previously met in June 2024 during Kemp's visit to Seoul.

SK On operates a 22 gigawatt-hour battery plant in Commerce, Georgia, through its U.S. unit, SK Battery America, and is building another facility jointly with Hyundai Motor Group in Bartow County.

- IANS

Share this article:

Reader Comments

R
Rohit P
Nearly 1000 jobs lost is heartbreaking for those families. It shows how volatile the green tech sector can be. India's push for EV manufacturing must include strong worker protection policies. We can't let our workers face such uncertainty.
A
Aman W
Interesting to see a Korean company scaling back in the US. Maybe this is an opportunity for Indian battery makers to step up? We have the talent and the drive. 🇮🇳 Let's focus on building a resilient domestic supply chain.
S
Sarah B
The article mentions they are still building new plants. This seems like a strategic adjustment, not a full retreat. The EV transition was never going to be a straight line. Market corrections are natural.
V
Vikram M
Ford canceling the F-150 Lightning plans must have been a huge blow. It's a reminder that our Indian automakers need to be very sure of their EV models before committing massive resources. Customer adoption is key.
K
Karthik V
While I understand market realities, laying off 37% of your workforce is a drastic step. A more phased approach or retraining could have been explored. Hope the Indian industry learns to balance profitability with social responsibility.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50