TL/DR –
SK Battery America is laying off 37% (958 workers) from its plant in Georgia following the dissolution of its $11.4 billion battery joint venture with Ford. The layoffs come amid a downturn in demand for electric vehicles (EVs) in the U.S., partly due to the elimination of the $7,500 consumer EV tax credit and moves by the Trump administration to weaken fuel economy and emissions standards. Despite the layoffs, SK Battery America is not entirely retreating but instead is focusing more on the battery energy storage system (ESS) market.
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Georgia’s Green Energy Investments Face Risks as SK Battery America Announces Layoffs
The state of Georgia has been a popular destination for Inflation Reduction Act (IRA)-related green energy investments, but recent developments might change this scenario. Notably, SK Battery America, a major player in the sector, has declared a reduction in its workforce by 37%. This means that 958 employees at its Commerce, Georgia plant will lose their jobs as of March 6.
The plant, which opened in January 2022 costing US$2.6bn, used to supply cells for the Ford F-150 Lightning. However, the model was cancelled by Ford in December 2025. This comes after the dissolution of SK’s battery joint venture with Ford in December, which resulted in SK incurring a US$2.6bn asset impairment and leaving them with a Tennessee plant that is not expected to start production until 2028.
Pivot to Energy Storage Systems Amid Falling EV Demand
With EV demand in the U.S. stagnating due to regulatory changes, SK Battery America is making a strategic move. It has announced its decision to expand into the battery energy storage system (ESS) market. The company’s move comes in response to the effects of policy changes, including the elimination of the US$7,500 consumer EV tax credit in September 2025 and the Trump administration’s policies weakening fuel economy and emissions standards. These moves have resulted in a lack of regulatory incentive for automakers to commit to electrification timelines, impacting EV demand which held flat at around 8% of new vehicle sales in 2025.
Political Implications in Georgia
The layoffs could hold political significance in Georgia, a state that has seen fluctuating support for Republicans and Democrats since 2018. It represents a direct impact of federal policy on a state that has attracted more IRA-related green energy investment projects than any other. The future of a Rivian plant in Georgia, which received IRA loans under the Biden administration, also appears uncertain. Despite President Donald Trump’s vocal support for US manufacturing, the SK layoffs could potentially cause a political backlash in the upcoming midterms.
Future Outlook for SK and the Industry
Despite these setbacks, SK is not withdrawing entirely from the scene. It is planning to start production at a second Georgia plant, built jointly with Hyundai, in the first half of 2026. Moreover, the Tennessee facility still maintains the potential to supply both automotive and ESS cells. While SK, along with LG Energy Solution and Samsung SDI, is pivoting towards energy storage as a hedge against the decline in US EV demand, it remains to be seen if the ESS market can accommodate all three.
Challenges, however, persist. SK On posted an operating loss of KRW 441.4bn in the fourth quarter of 2025. While the dissolution of the Ford JV removed KRW 5.4tr in debt from the balance sheet, it also meant SK has to pursue new customers without JV governance constraints. The company did manage to secure at least one major ESS supply deal and a Nissan battery agreement in 2025. The layoffs in Georgia are an operational repercussion of this strategic pivot.
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