SK Battery has announced the termination of 958 employees at its manufacturing facility in Commerce, Georgia, marking one of the largest workforce reductions in the U.S. electric vehicle battery sector in 2026. The move underscores growing operational pressures in the nation's expanding clean energy infrastructure.
- 958 workers were laid off at SK Battery’s plant in Commerce, Georgia, effective March 6, 2026.
- The plant, part of a $2.5 billion U.S. investment, supplies batteries to GM and Tesla.
- The reduction represents about 22% of the facility’s total workforce.
- SK Battery cited shifting demand and supply chain optimization as primary reasons.
- LIT stock dropped 5.3% following the announcement; ^VIX rose 2.1 points.
- The event reflects broader challenges in scaling EV battery production in North America.
SK Battery America has laid off 958 workers at its large-scale battery production facility in Commerce, Georgia, according to internal communications and company filings. The workforce reduction, effective March 6, 2026, represents approximately 22% of the plant’s total workforce and is attributed to a reevaluation of production capacity and supply chain alignment. The facility, a cornerstone of the company’s U.S. expansion since 2022, was originally designed to supply batteries for electric vehicles produced by General Motors and Tesla. Despite initial plans to reach full capacity by 2025, output has remained below projections due to shifting demand forecasts and supply chain bottlenecks. The layoffs come amid broader recalibrations in North American EV battery manufacturing. SK Battery cited a need to prioritize high-demand battery chemistries and optimize efficiency across its global network. The Georgia plant had been a key component of a $2.5 billion investment plan aimed at supporting domestic clean energy goals and strengthening supply chains for automakers. However, lower-than-expected orders from GM and TSLA, combined with rising competition from Chinese battery suppliers, have intensified cost pressures. Market reactions were immediate, with shares of SK Battery’s North American subsidiary (trading under LIT) declining 5.3% on the day, while the VIX index rose 2.1 points, signaling increased volatility in the clean energy sector. Investors are now reassessing near-term production forecasts for EV batteries, with implications for both automakers reliant on these components and suppliers in the broader energy ecosystem. The reduction also affects local economic activity in the region, where the plant had been a major employer and catalyst for infrastructure development.