SK On slashes 37% of US staff as EV demand slows

SK On’s US unit SK Battery America cut 958 jobs at its Georgia battery plant, trimming 37% of its 2,566 employees.

The plant opened in January 2022 after a US$2.6 billion investment and has supplied batteries for Ford’s F‑150 Lightning.

The layoffs follow Ford halting F‑150 Lightning production and the Trump administration’s abolition of a US$7,500-per-vehicle federal EV subsidy, which took effect in October of last year, developments that reports say have slowed US EV demand.

A source from SK Battery America told AP and Fox it reduced its workforce to adjust operations to market conditions.

🔗 Source: Chosun Daily

🧠 Food for thought

Implications, context, and why it matters.

SK On’s layoffs follow, but aren’t solely explained by, the Ford JV breakup

After SK On and Ford agreed to unwind and effectively dissolve the BlueOval SK joint venture (JV), SK On moved ahead with job cuts. The decision was announced months earlier 1.
Ford’s pivot toward cheaper lithium-iron-phosphate (LFP) batteries helped drive the split. SK On was described as lacking commercially viable technology for automotive applications at the time 1.
Apart from vehicle plans, SK On is preparing to repurpose some Georgia factory lines to produce LFP cells for the energy storage system (ESS) market. ESS uses large battery packs to store electricity for the power grid and businesses, not cars 1.
In December, Ford went beyond pausing production plans. It said it would scrap the fully electric version of its iconic pickup truck and move to an extended-range version 2.

One company’s layoffs signal an industry-wide EV strategy shift

Elsewhere in the market, General Motors and Stellantis have also pulled back from some EV plans. The cuts fit that broader reset 3.
Across several legacy automakers, more attention is going to hybrid and plug-in hybrid vehicles 2.
Dropping the Ford JV leaves SK On less tied to one automaker’s EV roadmap. That change can make planning easier when product strategies shift 4.
That leaves SK On with 67 gigawatt-hours (GWh) of wholly owned U.S. battery production capacity in Georgia plus Tennessee. The company and industry sources have linked serving a wider customer base, including Hyundai Motor Group and Volkswagen, to efforts to improve profitability and financial resilience 1.