SK Innovation Co.’s battery division is making significant cuts, laying off over a third of its workforce at its Georgia plant. This decision comes as the company grapples with a drop in electric vehicle (EV) sales.
On Friday, SK Battery America announced it would let go of 958 employees, about 37% of its 2,566-person staff. This facility in Commerce, Georgia, previously supplied battery cells for Ford’s now-shelved electric F-150 Lightning pickup. It also supplied batteries for Volkswagen and Hyundai.
The company stated that these layoffs were necessary to adjust to current market conditions, emphasizing its commitment to Georgia and the U.S. battery supply chain.
In recent trends, South Korea’s battery sector has faced challenges. The EV market in the U.S. is slowing due to policy changes, including the removal of purchase subsidies and reductions in fuel economy and emissions standards. In fact, the absence of the federal tax credit for EV purchases impacted SK’s profits in late 2025, despite increased shipments to Europe.
Looking ahead, SK plans to focus on customers in both automotive and stationary energy storage sectors. A second plant in Georgia is set to start operations in early 2026, primarily supplying Hyundai. Another facility in Tennessee, which was once part of a joint venture with Ford, isn’t expected to launch production until 2028 but aims to serve both the automotive and energy storage markets.
To provide context, the electric vehicle landscape has seen rapid changes. Recent statistics show that EV sales accounted for nearly 7% of total vehicle sales in the U.S. in 2022, a significant increase from just 2% in 2020. However, with fluctuating policies and market dynamics, companies like SK will need to adapt quickly to stay competitive.
For more insights into the evolving EV market and related policies, you can refer to this report from the U.S. Department of Energy.
