On March 6, SK Battery America filed a Worker Adjustment and Retraining Notification with the state of Georgia, confirming 958 permanent layoffs at the Commerce plant. The cuts reduced the workforce by 37%, from 2,566 to roughly 1,600. Affected employees received pay and benefits through May 6. Three months later, the company is past the announcement phase. Production lines are being converted from NMC EV cells to LFP grid storage cells. Mass production of LFP is targeted for October 2026 , according to reporting from The Elec in April. The Flatiron Energy deal that underpins the pivot is already structured, and first deliveries are slated for the second half of 2026. AI-generated image SK Battery America's $2.6 billion manufacturing complex in Commerce, Georgia is retooling for LFP grid storage production. Oct 2026 LFP Mass Production Start 7.2 GWh Flatiron Energy Agreement 10+ GWh 2026 ESS Order Target 22 GWh Commerce Plant Annual Capacity How Ford's Exit Triggered the Cascade The roots of the layoff trace directly to December 2025, when Ford Motor Company announced it was dissolving its BlueOval SK joint venture with SK On. The partnership, originally valued at $11.4 billion, was supposed to build three battery plants across Tennessee and Kentucky to supply Ford's growing lineup of electric trucks and SUVs. Instead, Ford scrapped its plans for a fully electric F-150 Lightning, citing sluggish sales that never matched the initial reservation hype. The automaker pivoted to hybrid vehicles, smaller EVs, and its own energy storage business. With the joint venture dissolved, SK lost its anchor customer at Commerce. The plant had been producing lithium-ion cells primarily for Ford's electric truck program. Ford recorded a $19.5 billion write-down related to its electrification strategy shift. For SK, the financial blow was less visible on paper but more immediate on the factory floor. SK On itself reported operating losses in recent quarters as EV battery margins compressed across the industry. AI-generated image Battery manufacturing lines at Commerce facing reduced utilization after the Ford partnership ended. The EV Slowdown in Numbers SK's layoffs were not an isolated event. The entire U.S. EV battery ecosystem recalibrated after aggressive expansion collided with softer-than-expected consumer demand. EV sales accounted for roughly 8% of new U.S. vehicle purchases in 2025, growing year over year but falling well short of the targets automakers set during the 2021-2023 EV investment boom. Cox Automotive reported a 30% year-over-year drop in U.S. EV sales in January 2026, the steepest monthly decline in recent memory. The Federal Reserve Bank of Dallas published a report in early March noting that the U.S. battery storage industry "won't see improvements anytime soon," pointing to reduced federal support, the elimination of the $7,500 EV consumer tax credit, and a general pullback in automaker commitments to battery-electric platforms. Timeline: SK Battery America from Ford to Storage Jan 2022: Commerce plant begins production. Initial workforce targets set at 2,600. 2023: Workforce exceeds hiring goal, expanding to meet projected EV demand. 2024: OSHA fines SK Battery America twice for exposing workers to respiratory hazards at Commerce. Sep 2025: SK On signs 7.2 GWh BESS supply agreement with Flatiron Energy Development — its first gigawatt-scale U.S. energy storage contract. Initial 1 GWh for a Massachusetts project, first deliveries from H2 2026. Dec 2025: Ford dissolves BlueOval SK joint venture and cancels the electric F-150 Lightning. SK On signals a broader pivot toward stationary energy storage. Mar 6, 2026: SK files a WARN notice with Georgia, confirming 958 permanent layoffs. Affected workers receive pay through May 6. Mar 15, 2026: Bloomberg reports SK On is targeting over 10 GWh in U.S. ESS orders in 2026, shifting roughly 20% of its global 100 GWh capacity toward storage applications. Apr 2026: The Elec reports LFP mass production at Commerce is targeted for October 2026, with lines actively being converted from NMC EV cells. H2 2026: First Flatiron LFP containerized BESS deliveries expected; dedicated ESS mass production underway. The Pivot to Stationary Storage SK Battery America's post-layoff statement was direct. "We are pursuing a range of future customers, including the Battery Energy Storage System arena," spokesperson Joe Guy Collier told Manufacturing Dive. The company confirmed it "remains committed to Georgia and to building a robust U.S. supply chain for advanced battery manufacturing." The Flatiron Energy deal backs that commitment with concrete volume. Signed in September 2025, the framework covers up to 7.2 GWh of LFP containerized BESS units , valued at roughly $1.4 billion, with Flatiron holding first-offer rights through 2030 for projects across New England and other states. Initial deliveries of 1 GWh go to a Massachusetts project, starting in H2 2026 from the repurposed Commerce lines. The chemistry shift matters. Commerce's core competency has been NMC cells for high-energy-density EV applications. LFP for grid storage demands different cell geometry, formation protocols, and quality controls. The October 2026 LFP production start means retooling is happening now, in parallel with continued NMC output for automotive customers like Hyundai and Kia. AI-generated image Grid-scale battery storage systems are absorbing manufacturing capacity that was originally built for EV cells. The pivot fits a broader market reality. The U.S. is on track to deploy 35 GW / 70 GWh of new battery storage capacity in 2026, according to SEIA projections. Utilities, data center operators, and renewable developers are buying storage at record volumes. That demand is absorbing capacity that EV programs are no longer consuming. Two Georgia Plants, Two Strategies While Commerce retooling for BESS, SK On's second major Georgia facility is moving in a different direction. The $5 billion joint venture with Hyundai Motor Group in Bartow County (Cartersville) was targeting a production start in H1 2026. That plant produces NMC cells for Hyundai and Kia EVs assembled at Hyundai's Metaplant America in Bryan County, Georgia. The two facilities reflect a deliberate separation. Commerce handles the storage pivot and diversification. Cartersville serves the captive automotive customer that Ford no longer is. Hyundai's U.S. EV production gives SK On a stable base load for NMC while LFP storage production ramps up at Commerce. Together, the two Georgia plants represent one of the largest battery manufacturing concentrations in the United States. SK On is also in talks with data center operators and energy developers for additional ESS supply agreements, aiming for over 10 GWh in total U.S. ESS orders in 2026. That would shift roughly 20% of the company's global 100 GWh annual capacity to non-EV applications. Legal Questions and Political Fallout Within hours of the WARN filing in March, law firm Strauss Borrelli PLLC announced it was investigating SK Battery America for potential violations of the federal WARN Act. The law requires 60 days of written advance notice before mass layoffs or plant closures. Strauss Borrelli argued that filing the notice on the same day workers were told their jobs were eliminated may not have met that threshold. SK Battery America maintains the reduction complies with WARN Act guidelines. Affected employees received pay and benefits through May 6, which the company says satisfies the 60-day notice requirement. No lawsuit has been publicly filed as of June 2026. The political response split along predictable lines. Senator Jon Ossoff (D-GA) blamed federal policy shifts and the rollback of EV incentives. Governor Brian Kemp's office highlighted Georgia's overall job growth and continued appeal to advanced manufacturing. No state or federal intervention has been announced. The Competition SK On Has to Beat SK is not alone in cha