SK On, the battery subsidiary of SK Innovation, has cut more than one-third of its workforce at its Georgia plant in the United States. The reduction comes as global electric vehicle demand weakens, major customers slow their electrification timelines, and the U.S. government scales back green energy policies.
According to Bloomberg on the 7th, SK Battery America (SKBA), SK On's U.S. subsidiary, disclosed on the 6th (local time) that it had laid off 968 workers—37% of the 2,566 employees at its battery plant in Commerce, Georgia. SK Battery America stated, "We made the decision to reduce our workforce to adjust operations in line with market conditions," adding, "We remain committed to fulfilling our investment promises to Georgia and building a battery supply chain in the United States."
The workforce reduction was directly triggered by production plan changes from Ford, a major customer. The Georgia plant has supplied batteries to Germany's Volkswagen, South Korea's Hyundai Motor, and Ford's electric pickup truck, the F-150 Lightning. However, Ford recently canceled production of the pickup model, causing utilization rates at the Georgia plant to decline.
Ford's decision stems from policy changes under the U.S. administration. The Donald Trump administration eliminated tax credit incentives for EV purchases, dampening electric vehicle sales in the United States. In response, Ford shifted its business strategy to focus on hybrids and internal combustion engine vehicles, which offer more reliable short-term profits, rather than pure electric vehicles with uncertain demand. The automaker's strategic pivot has led to restructuring at its battery suppliers.
Korean battery makers are experiencing declining utilization rates and fixed-cost burdens as the EV transition slows in their key markets of the United States and Europe. SK On is responding by reorganizing its North American production portfolio. Starting in the first half of this year, it will begin operations at its second Georgia plant to supply batteries to Hyundai Motor. The company plans to stabilize plant operations based on confirmed customer demand.
Meanwhile, the Tennessee plant, a joint venture with Ford, has entered a slowdown phase with mass production delayed to 2028. The company is also diversifying the plant's applications. A company official said, "The Tennessee plant may produce not only EV batteries but also batteries for energy storage systems (ESS), which are seeing growing demand." The move is interpreted as an effort to secure new revenue sources beyond electric vehicles in response to changing market conditions.
