(C) S&P Global

COMMERCE, Georgia — In a stark reflection of the cooling electric vehicle (EV) market, SK Battery America (SKBA), the U.S. subsidiary of South Korean battery giant SK On, has announced a massive layoff affecting more than a third of its workforce at its Georgia manufacturing hub.

According to a public disclosure filed on March 6, the company is terminating 968 employees at its facility in Commerce, Georgia. This reduction represents approximately 37% of the plant's total workforce of 2,566 personnel.

A Strategic Pivot Amid Market Volatility
The decision comes as the global automotive industry grapples with a significant deceleration in EV adoption. SKBA characterized the move as a necessary adjustment to remain competitive in an increasingly unpredictable economic climate.

"We have made the difficult decision to reduce our workforce to align our operations with current market conditions," SK Battery America stated in an official email. "Despite these challenges, we remain committed to our investment in Georgia and our mission to build a robust U.S. supply chain for advanced battery manufacturing."
The "Trump Effect" and OEM Retrenchment
Industry analysts point to a "perfect storm" of geopolitical and economic factors hitting the battery sector. The Commerce plant has long been a primary supplier for high-profile models, including the Volkswagen ID.4 and the Ford F-150 Lightning.

However, the landscape shifted dramatically following the Trump administration's recent repeal of EV federal tax credits. This policy change prompted Ford to cancel several EV production lines and pivot back toward hybrid and internal combustion engine (ICE) vehicles. The loss of consistent orders from these major partners has directly impacted SK On’s bottom line and operational requirements.

 
Looking Ahead: Resilience and Diversification
Despite the layoffs at the Commerce site, SK Innovation (SK On’s parent company) is not fully retreating from its American ambitions. The company is currently moving forward with several key projects:

Second Georgia Plant: A new facility dedicated to supplying Hyundai Motor Group is nearing completion. Production is slated to begin in the first half of this year.
BlueOval SK (Tennessee): The joint venture with Ford is still targeting a 2028 operational launch. Reports suggest the facility may pivot to produce Energy Storage Systems (ESS) alongside automotive batteries to diversify risk.
Supply Chain Integration: SK continues to emphasize its long-term role in the U.S. energy transition, though the pace of expansion has clearly been recalibrated.
The layoffs serve as a sobering reminder of the "chasm" in the EV transition—a period where early-adopter demand has been met, but mass-market affordability and infrastructure remain hurdles. For South Korean battery makers, who have invested billions in North American soil, the coming years will be a test of endurance and flexibility.