SK Battery America lays off nearly 1,000 workers at Commerce plant
A contractor works at a SK Battery America Inc. facility under construction in Commerce, Georgia, U.S., on Thursday, Oct. 22, 2020. Automakers are investing billions of dollars to bring new electric vehicles to consumers in the U.S. and other global
COMMERCE, Ga. - A North Georgia battery plant has announced the layoff of nearly 1,000 workers, according to reports from the Associated Press.
What we know:
SK Battery America Inc. announced the layoffs of 958 employees, citing shifts in automakers’ electrification plans and uncertain consumer demand for electric vehicles (EVs). According to a Worker Adjustment and Retraining Notification (WARN) notice filed by human resources chief Chuck Moore, the final day of work for these employees was today. Impacted workers will continue to be paid through May 6.
Local perspective:
SK opened the $2.6 billion battery facility in Commerce in January 2022. The plant notably supplied batteries for the Ford F-150 Lightning electric pickup truck. However, the Associated Press reports that Ford announced plans to cancel the fully electric version of the truck this past December.
Big picture view:
The layoffs follow a significant shift in federal policy. Earlier this year, the Trump administration steered federal support away from electrification, opting for more lax automotive emissions policies and a broader agenda supporting the oil and gas industries. Additionally, Congress has eliminated consumer tax credits of up to $7,500 for the purchase of new or used EVs.
The administration has also announced plans to weaken fuel economy and greenhouse gas emissions rules, a move that essentially eliminates federal incentives for auto companies to prioritize cleaner vehicle fleets.
What they're saying:
SK Battery America, in a statement sent to FOX 5 Atlanta, said it remains committed to Georgia and its U.S. operations and that these moves are due to current market conditions but are in balance with its long-term success:
"To align operations to market conditions, SK Battery America has made the difficult decision to reduce our workforce. We appreciate the contributions of employees and will be working with those affected during this transition. SK Battery America remains committed to Georgia and to building a robust U.S. supply chain for advanced battery manufacturing. We are pursuing a range of future customers, including the Battery Energy Storage System arena."
Sen. Jon Ossoff places the blame squarely at the feet of the current White House administration:
"Let’s be clear: these were battery manufacturing jobs and now they’re gone. As predicted, Trump’s war on electric vehicles is hurting Georgia’s economy. We were booming and building new plants. Now Georgians are losing their jobs."
Sen. Raphael Warnock echoed those sentiments:
"My heart is with the workers and families affected by these layoffs. The Georgia workers at the SK plant have helped make Georgia a leader in advanced manufacturing. They deserve better than this. The administration in Washington has decided to put politics over people and slash the clean energy investments that helped bring these good-paying manufacturing jobs to our state. On top of that, they’ve also made manufacturing in Georgia more expensive with their harmful tariff taxes. I will continue to fight for Georgia workers and to protect investments that create good-paying manufacturing jobs in our state."
The Source: The Associated Press contributed to this story.