SK On Cuts Nearly 1,000 Jobs at Georgia Battery Plant Due to EV Demand Decline
Synopsis
In a major blow to the workforce, SK On has announced layoffs of nearly 1,000 employees at its Georgia plant, driven by a significant downturn in electric vehicle demand. This restructuring aims to adapt to changing market conditions while reaffirming its commitment to U.S. battery manufacturing.
Key Takeaways
SK On has laid off 968 workers at its Georgia battery plant.
The layoffs are part of a restructuring due to slowing electric vehicle demand .
This reduction accounts for about 37% of the plant's workforce.
SK On is committed to maintaining operations in Georgia while building a strong U.S. supply chain .
The company is also constructing a second plant in Georgia for Hyundai Motor.
Seoul, March 7 (NationPress) In a significant move, SK On, a prominent battery manufacturer from South Korea, has terminated nearly 1,000 employees at its battery plant located in Georgia, USA, due to a downturn in electric vehicle (EV) demand, as revealed in a company filing on Saturday.
According to a Worker Adjustment and Retraining Notification (WARN) notice published on a state website, SK Battery America, the US branch of SK On, has laid off 968 workers at its manufacturing facility in Commerce, Georgia.
This workforce reduction represents approximately 37% of the plant's overall staff of around 2,500, as reported by Yonhap news agency.
SK On clarified that this decision is part of its restructuring strategy, motivated by the declining sales of EVs and evolving market dynamics. The company emphasized this move is aimed at optimizing operations while still fulfilling its commitments to Georgia and bolstering the U.S. supply chain for advanced battery production.
The Georgia facility has been supplying batteries to automotive giants like Volkswagen from Germany and Hyundai Motor from South Korea. It also provided batteries for Ford Motor's F-150 Lightning electric pickup truck, although profit margins have been impacted after Ford scrapped its production plans for that model.
Currently, SK On is in the process of constructing a second battery plant in Georgia, which will cater to Hyundai Motor, with operations expected to commence in the first half of this year. Additionally, a plant in Tennessee is anticipated to start production in 2028.
Last October, Georgia's Governor Brian Kemp met with SK On's leadership to explore avenues for enhancing collaboration and strengthening business partnerships. Earlier that same day, Kemp's delegation visited SK On’s headquarters in Seoul, discussing strategies with Lee Seok-hee, the CEO of the company. This followed their earlier meeting in June 2024 during Kemp's prior visit to South Korea.
SK On operates a 22 gigawatt-hour battery plant in Commerce, Georgia, through its U.S. subsidiary, SK Battery America, and is currently developing another facility in collaboration with Hyundai Motor Group in Bartow County.
Point of View
The recent layoffs at SK On highlight the volatile nature of the electric vehicle market. As demand fluctuates, companies are forced to make tough decisions to sustain operations. This situation underscores the importance of adaptability in the rapidly evolving automotive landscape.
NationPress
29 Jun 2026
Frequently Asked Questions
Why did SK On lay off workers?
SK On laid off workers due to a slowdown in electric vehicle demand and to restructure its operations in response to changing market conditions.
How many employees were affected by the layoffs?
Nearly 1,000 employees, specifically 968, were laid off from the Georgia battery plant.
What percentage of the workforce does this represent?
The layoffs account for approximately 37% of the plant's total workforce of around 2,500 employees.
What are the future plans for SK On in the U.S.?
SK On is constructing a second battery plant in Georgia, expected to start production in the first half of this year, and another facility in Tennessee anticipated to begin operations in 2028.
Which companies does the Georgia plant supply batteries to?
The plant supplies batteries to automakers including Volkswagen, Hyundai Motor, and previously to Ford for the F-150 Lightning electric pickup truck.
