SK On cuts over 950 jobs at US battery plant

South Korean battery manufacturer SK On is laying off 958 employees from its cell production facility in Commerce, Georgia, USA. The layoffs affect 37 percent of the 2,566-strong workforce. The reason for this is the weak market conditions for electric vehicles in the U.S.

Sk battery america zellfabrik in commerce georgia
Image: SK Battery America

The plant in Commerce has to date supplied battery cells for several models, including the now-discontinued Ford F-150 Lightning pickup truck, as well as the US version of Volkswagen’s ID.4 and models from sister brands Hyundai and Kia. The factory also produces battery cells for stationary battery energy storage systems (BESS).

“To align operations to market conditions, SK Battery America has made the difficult decision to reduce our workforce,” the company said in a statement to Bloomberg. However, it remains committed to Georgia and to building a robust US supply chain for the production of advanced batteries, SK Battery America added.

SK Battery America is suffering from the negative impact of the Trump administration’s policies on the ramp-up of electric vehicles. These policies allowed the $7,500 tax credit for EV purchases to expire on 30 September 2025 and relaxed emission regulations for internal combustion engine vehicles.

“Let’s be clear: these were battery manufacturing jobs and now they’re gone,” Georgia U.S. Sen. Jon Ossoff, a Democrat, said in a statement. “As predicted, Trump’s war on electric vehicles is hurting Georgia’s economy. We were booming and building new plants. Now Georgians are losing their jobs.”

The South Korean group SK Innovation began construction of the cell factory in Commerce as early as 2019. During the construction phase, it announced a second factory, bringing total investment to $2.6 billion and enabling an annual battery production capacity of 22 GWh to power 300,000 electric vehicles. In January 2022, mass production of battery cells began at the first plant, focusing on Volkswagen’s ID.4. In early 2023, mass production also started at Plant 2, with cells for the Ford F-150 Lightning. Meanwhile, SK Battery America has become a subsidiary of SK On, as SK Innovation consolidated its battery business under this division from 2021 onwards.

apnews.com, bloomberg.com

0 Comments

about „SK On cuts over 950 jobs at US battery plant“

Leave a Reply

Your email address will not be published. Required fields are marked *