SK On, the battery subsidiary of SK Innovation, laid off more than one-third of the workforce at its plant in Georgia.
SK Battery America, SK On's U.S. unit, said in a disclosure on the 6th (local time) that it laid off 968 workers, or 37% of the 2,566 employees, at its plant in Commerce, Georgia.
The layoffs were caused by weak demand for electric vehicles (EVs). The plant has supplied batteries for electric vehicles made by automakers including Ford's electric pickup truck "F-150 Lightning," Volkswagen, and Hyundai Motor.
However, it was hit recently when Ford canceled production of this model. Ford decided to focus on producing profitable hybrids and internal combustion engine vehicles after the U.S. administration of Donald Trump ended the tax credit previously applied to EV purchases.
SK Battery America said, "We made the difficult decision to reduce our workforce to adjust operations to market conditions," adding, "We remain steadfast in fulfilling our commitments to Georgia and in building a robust U.S. supply chain for advanced battery manufacturing."
Meanwhile, SK Innovation is building a second battery plant in Georgia. The plant will begin production in the first half of this year and supply batteries to Hyundai Motor. Another plant in Tennessee, which was previously operated as a joint venture with Ford, will begin production in 2028.