South Korean electric vehicle (EV) battery manufacturer SK On Company has laid off almost 1,000 workers at its battery manufacturing plant in the US state of Georgia, according to local reports citing a company filing, amid slowing demand for EVs in the country following the withdrawal of battery electric vehicle (BEV) incentives by the US government last year.
The company’s US manufacturing subsidiary, SK Battery America, is reported to have cut 968 jobs at its battery plant in Commerce, Georgia, representing around 39% of the facility’s workforce of around 2,500 employees.
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SK On confirmed that the restructuring is in response to changing market conditions, including a sharp slowdown in demand for battery electric vehicles (BEVs), and that the company has decided to “adjust its operations while maintaining its commitment to building a strong US supply chain for advanced batteries.”
The US$ 2.6 billion battery plant began operations in early 2022, supplying batteries for Ford’s F-150 Lightning pickup truck, as well as for Hyundai and Volkswagen. The company has been hit by cancelled production plans by its customers, amid falling demand for BEVs in the country.
SK On is scheduled to complete construction of a second battery plant in Georgia this year to supply Hyundai, with a further plant scheduled to be completed in Tennessee in 2028.
