- SK Battery America reduced its Georgia workforce by 37% following changes in EV demand and partnerships.
- The company is pivoting toward energy storage systems while continuing new battery production plans.
The SK Battery America layoffs announced in early March marked a major workforce reduction at the company’s battery plant in Commerce, Georgia. The facility, which began operations in January 2022 after a USD 2.6 billion investment, has cut 958 jobs, reducing total staffing by about 37% to roughly 1,600 employees.
The Georgia plant had previously supplied battery cells for the Ford F-150 Lightning produced at Ford’s Rouge Electric Vehicle Center in Dearborn, Michigan. Production of that electric pickup ended in December 2025, removing a key source of battery demand and triggering operational adjustments at the facility.
Impact of EV demand slowdown
The workforce reduction follows several strategic shifts in the United States electric vehicle sector. A major turning point occurred when a planned USD 11.4 billion battery joint venture between Ford and SK was dissolved in December, altering long-term production expectations for both companies.
The termination of the partnership resulted in a significant financial impact for SK, including an asset impairment estimated at KRW 3.7 trillion (about USD 2.6 billion). It also affected development timelines for a separate battery facility in Tennessee, which is now expected to begin production around 2028.
Operational restructuring
Following the restructuring, SK Battery America is reassessing its manufacturing priorities in response to slower EV adoption in parts of the U.S. market. Policy changes affecting incentives and consumer demand have contributed to a cautious outlook for electric vehicle production volumes.
Expansion toward energy storage systems
To offset reduced EV battery demand, the company is increasing its focus on the battery energy storage system market. Grid-scale storage solutions are experiencing rapid growth as utilities and energy developers deploy batteries to stabilize renewable power generation.
The battery manufacturer has already secured at least one major energy storage supply agreement and finalized a battery supply arrangement with Nissan during 2025. These deals indicate a broader diversification strategy beyond automotive applications.
Future production developments
Despite current restructuring measures, expansion activities continue in the region. A second Georgia battery facility developed jointly with Hyundai remains on schedule to begin production in the first half of 2026.
This project is expected to strengthen regional battery manufacturing capacity while supporting future electric vehicle programs across multiple automakers operating in North America.
While the SK Battery America layoffs highlight the challenges facing EV supply chains, the company’s pivot toward diversified battery applications suggests a longer-term strategy focused on both transportation electrification and energy infrastructure.
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