SK Battery America, a subsidiary of South Korea-based SK On, is laying off hundreds of workers from its production facility in Commerce, Georgia, as electric vehicle battery demand slows and federal incentives dry up.
The Lithium-ion battery producer filed a Worker Adjustment and Retraining Notification on Friday, notifying Georgia of job cuts affecting 958 people.
The company also notified affected workers that they will receive pay and benefits for the next 60 days, a spokesperson confirmed to Manufacturing Dive via email. Friday, March 6, was their last day of work.
The Commerce site had 2,566 workers and the reductions brought the headcount to 1,600. Joe Guy Collier, SK America’s spokesperson, said the company will work with the affected workers during the transition.
“SK Battery America remains committed to Georgia and to building a robust U.S. supply chain for advanced battery manufacturing,” the company said in a statement. “We are pursuing a range of future customers, including the Battery Energy Storage System arena.”
The changes come as the electric vehicle battery industry navigates demand challenges. Many automakers and battery companies are making cutbacks in response to slower sales and a pullback of federal incentives under the current administration, according to the Federal Reserve Bank of Dallas. They are also looking to cater to growing data center demand as customers look for backup power and energy storage systems.
In December, Ford Motor Co., a customer of SK, announced it was shifting its electrification plans to include hybrid vehicles and smaller, more affordable EVs, as well as grow its energy storage business. The automaker expects to record a $19.5 billion write-down due to the move.
Ford also dissolved its BlueOval SK battery joint venture with SK On as it shifts away from EVs, and canceled the electric F-150 Lightning due to sluggish sales.
SK America has experienced ups and downs over the years. In 2023, the company said it would expand its Commerce site workforce by several hundred employees to meet rising EV demand, exceeding its goal of 2,600 employees. The Occupational Safety and Health Administration later fined the EV battery maker twice for exposing workers to respiratory hazards.
In response to the layoffs, law firm Strauss Borrelli announced it was investigating SK Battery for allegedly failing to notify the 958 employees per the WARN Act. The law mandates that employers notify their workers in writing at least 60 days before a plant closure or job cuts take effect.
Collier said SK Americas’ reduction complies with WARN guidelines.
