South Korea's SK Innovation (SKI) subsidiary SK On announced on March 6 a reduction of 968 employees—37% of its 2,566-strong workforce—at its battery factory in Commerce, Georgia. The move reflects mounting pressure on the global electric vehicle (EV) supply chain as sales growth slows.
Ford pulls the plug
According to reports from The Korea Economic Daily and Bloomberg, SK On's US branch, SK Battery America, supplies EV batteries primarily to Germany's Volkswagen Group and South Korea's Hyundai Motor. It was also a key supplier for Ford Motor's electric pickup, the F-150 Lightning. Ford's subsequent cancellation of this model, combined with the US government's removal of US$7,500 in tax credits for EV purchases, has dampened EV sales and weighed on SK On's US operations. This follows a broader shift in US government priorities toward lower automotive greenhouse gas regulations and greater support for the oil and gas sectors under President Donald Trump.
Painful, but necessary
A representative from SK Battery America described the layoffs as a difficult but necessary decision driven by market realities and adjustments in operational strategy. Despite these challenges, SK Innovation continues to invest in a second battery plant in Georgia, slated to begin production in the first half of 2026, to support ongoing EV battery demand from clients like Hyundai Motor.
Georgia's green bet at risk
According to the Associated Press, Georgia had benefited greatly from incentives put in place under former US President Joe Biden to accelerate green energy projects, attracting an estimated US$20 billion in investment for EV and battery manufacturing projects that could support over 25,000 jobs in the state.
A market stalling out
Reporting by S&P Global indicates that the EV market has slowed across several major markets, due in part to customer perceptions that EV prices remain too high and the phaseout of subsidies in certain countries. EV sales in the US remain particularly low, reaching only 9% of vehicle sales in the second half of 2025, as customers worry about charging convenience and range.
Industry sources in South Korea note that the slower EV adoption in the US and other major markets is intensifying competition and operational pressures among South Korean battery makers. How they adjust their strategies to navigate these changes will be a critical focus going forward.
Article edited by Jerry Chen
