SK On Lays Off Nearly 1,000 Workers At US Battery Plant Amid EV Slowdown

(MENAFN- IANS) Seoul, March 7 (IANS) 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 (EV) 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

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