Commerce, Georgia – Once a quintessential small American town where residents primarily engaged in agriculture and warehousing, Commerce, Georgia, has undergone a remarkable transformation in the three years since South Korean conglomerate SK Group's battery subsidiary, SK On, commenced operations at its advanced manufacturing facility here. The influx of a cutting-edge factory has generated high-quality jobs, spurred the development of new commercial districts, and consequently, driven up local property values. The battery plant alone has created 2,600 jobs, a figure equivalent to a third of Commerce's entire population. In recognition of SK's significant contribution to the region's economic development, the state of Georgia has even renamed a road near the plant "SK Boulevard" as a gesture of gratitude. SK On's Georgia plant stands as a prime example of a mutually beneficial US-Korea economic partnership, where Korean companies directly invest in the American heartland, cultivate new markets, and significantly contribute to local prosperity.
[KORUSnomics 2.0: Korean Firms Thrive in the US] SK On's Georgia Battery Plant
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A one-hour drive northeast from Hartsfield-Jackson Atlanta International Airport on the interstate brings you to Commerce, a city in Georgia with a population of 7,000. Another five-minute drive reveals the sprawling 2.7 million square feet SK Battery America (SKBA) plant, an area equivalent to 35 soccer fields.
During a visit on March 24th, the South Korean, American, and SKBA flags proudly fluttered side-by-side at the SKBA plant. A diverse workforce of varying ages moved in and out of the buildings, while large trailers and forklifts constantly transported materials. At the plant entrance, approximately 20 young men and women in their late twenties, carrying anti-static garment bags, were seen moving together. A plant official explained that these were newly hired employees undergoing training.
SK On, a battery subsidiary of SK Innovation, began construction of its first SKBA plant in 2019, during the first term of the Donald Trump administration, and commenced commercial operations in the first quarter of 2022. Subsequently, the second plant also began commercial operation in the fourth quarter of 2022. Together, the two plants have an annual production capacity of 22 GWh (gigawatt-hours), enough to power 200,000 electric vehicles. The batteries manufactured here are supplied to Ford and Volkswagen electric vehicles, and starting this year, also to Hyundai Motor Company and Kia.
● SK On Responsible for One-Third of Commerce's Jobs
The establishment of SKBA has completely transformed Commerce in terms of employment, tax revenue, and industrial structure. Before SKBA's arrival, Commerce, a town with a population under 10,000, was a typical small American city centered around warehousing, agriculture, and livestock farming. The introduction of SKBA's high-tech plant brought with it a surge in job opportunities.
SKBA's initial goal was to hire 2,600 local residents, a target originally set for 2024 but achieved ahead of schedule in 2022. Simple calculations reveal that the SK On plant is responsible for employing over one-third of Commerce's entire population. The state of Georgia has stated that "Korean companies, including SKBA, that have partnered or plan to partner with Georgia over the past decade have created or are expected to create a total of 33,600 jobs."
Commerce recently held a reopening ceremony for its newly renovated civic center, a multi-purpose administrative facility. The renovation was funded by local development funds contributed by SKBA. Matthew Haley, the City Manager of Commerce, stated, "The funds contributed by SKBA are also being used to improve facilities at local schools. Our city is seeing various benefits thanks to SKBA."
SKBA also engages in industry-academia cooperation with the University of Georgia (UGA) and Kennesaw State University in the region, including awarding scholarships to outstanding students. The "Capstone Project" is particularly popular among local students. This program allows UGA students to gain practical experience by conducting research related to plant operations and manufacturing solutions, presenting their ideas, and receiving feedback from current SKBA employees. Stephen Durham, Interim Dean of the UGA College of Engineering, expressed his gratitude for SKBA's efforts to promote education within Georgia, including the Capstone program.
Following SKBA's lead, other companies have also established a presence in Commerce. These include Enchem, a supplier of electrolytes for SKBA's batteries, and Wiztech, an electrical wiring company. The small town of Commerce is clearly experiencing a significant "trickle-down effect" since the completion of SKBA. Christian Bokich, SKBA's Director of Public Relations, whom we met at the plant, mentioned, "SKBA also makes an effort to utilize local businesses as much as possible, including for the operation of our in-house cafeteria."
● "Value of US Local Production to Increase"
SKBA repurposed some of its second plant's production lines at the end of last year to manufacture batteries for Hyundai's electric vehicles. The company is also jointly building a battery plant with Hyundai in Bartow County, Georgia, with the goal of commencing operations in 2026. An SKBA official stated, "We are preparing for the future through our business with Hyundai. Our goal is to maintain stable employment."
Recent analyses suggest that the US battery plant could see a boost as US President Donald Trump imposes "tariff barriers" on various countries. An SK On representative commented, "This creates an environment where US automakers, who have been importing batteries produced in Europe and Asia, will likely turn to US-made batteries that are exempt from tariffs. The value of production facilities that accumulate mass production experience in the US and contribute to the revitalization of the local economy will further increase."
Since its initial entry in 1984, SK Group has established production bases in the United States across various sectors, including semiconductors, biotechnology, batteries, and energy. SK Hynix is investing $3.87 billion (approximately 5.5 trillion won) in Indiana to build a packaging facility for artificial intelligence (AI) memory. Once completed in 2028, it will produce next-generation High Bandwidth Memory (HBM). SK Biopharmaceuticals' US subsidiary, located in New Jersey, is currently selling its epilepsy treatment drug "Cenobamate" in the local market. SK Group stated, "Recently, we have been strengthening our collaboration with major global partners such as NVIDIA, Microsoft (MS), and Intel in the US to focus on building an AI ecosystem."
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