# SK On cuts 40 jobs at Tennessee battery site, delaying output to 2028 *The South Korean cell maker reduced staffing at its Stanton facility to roughly 30 workers, deferring commercial production to 2028 as North American automakers pull back on EV investments.* **Published:** October 10, 2026 **By:** Seung-min Park **Section:** Batteries & Electric Vehicles — South Korea **Format:** Company Watch **Confidence:** high **Source:** https://eastasiabrief.com/batteries-ev/sk-cuts-40-jobs-tennessee-battery-site-delaying-output-634 **Publisher:** East Asia Brief (https://eastasiabrief.com/) --- ## What to know - SK On cut about 40 positions in Stanton on Oct. 9, 2026, leaving roughly 30 staff on site - Earlier cuts removed 150 workers in Tennessee and 958 staff at SK On's Georgia plant - Commercial cell production at the Stanton facility is deferred to 2028 ![A worker holding a tablet walks past robotic assembly lines inside an automated battery manufacturing facility. (AI-generated image)](https://eastasiabrief.com/media/2026-10-10-8069af773b09.webp) *A worker holding a tablet walks past robotic assembly lines inside an automated battery manufacturing facility. (AI-generated image)* SK On Tennessee cut about 40 jobs at its Stanton battery manufacturing facility on Oct. 9, 2026, reducing on-site staffing to roughly 30 personnel as the company curtails spending. The workforce adjustment leaves the plant operating with just over 1% of the 2,500 workers originally planned for full-scale operations. Commercial battery cell output at the site has been deferred until 2028. The reduction aligns site operations with current commercial requirements, SK On Tennessee said in a written statement. The company added that it remains committed to the state of Tennessee and its customer base. The action marks the second major headcount contraction at the Stanton location this year. BlueOval SK laid off 150 staff members in May after notifying state regulators in March. That earlier round took effect May 5 under formal notification WARN number 202500041, according to records from the Tennessee Department of Labor and Workforce Development. Management had sought to retain a core group of 100 workers. The workforce reductions followed the formal dissolution of the BlueOval SK joint venture between parent firm SK On and Ford Motor Company. The two partners completed their asset separation in May. Under the restructuring terms, SK On took full ownership and operational control of the Stanton battery cell plant. A Ford subsidiary assumed ownership of two sister battery facilities in Glendale, Kentucky. SK On incorporated SK On Tennessee as a wholly owned entity to run the Stanton site independently. The subsidiary transferred local environmental permits and industrial registrations into its own name in June. The retrenchment in Stanton reflects broader cost containment across SK On's American manufacturing footprint. Its SK Battery America unit eliminated 958 positions at its Commerce, Georgia plant in March. That Georgia reduction removed about 37% of the factory workforce. The company trimmed assembly shifts there following slower adoption of battery electric models across North American vehicle lines. Ford has also altered manufacturing timelines at the wider Stanton campus, originally established as the BlueOval City complex. The automaker decided to assemble gas-powered pickup trucks at its adjacent plant rather than dedicated electric models. Ford employed 80 people at that vehicle facility in late 2025, delaying substantial production hiring toward an updated 2029 operational launch. The shared industrial park had originally targeted 5,800 combined jobs. Development incentives in Tennessee require the automaker and cell manufacturer to create at least 90% of the 5,800 pledged positions over a 10-year period. Attaining that benchmark secures a $500 million state infrastructure reimbursement. Failing to deliver 80% of the promised employment total by 2032 triggers statutory clawback requirements, according to state project contracts. Prolonged operational delays increase the risk of running against those legislative deadlines. The dissolution of the joint manufacturing venture also required restructuring a $9.2 billion conditional loan from the United States Department of Energy. Federal authorities separated the credit package to align with independent corporate balance sheets. Ford took responsibility for a restructured $3.8 billion loan allocation tied to the Kentucky assets. That left SK On to fund and equip the Tennessee installation without joint capital contributions from the automaker. SK On has indicated plans to solicit external automotive customers and manufacture stationary energy storage systems from the Stanton site. Carrying costs continue to accrue on idle cleanroom facilities while mechanical tooling remains uninstalled. South Korean battery cell manufacturers are reassessing North American expansion pace to limit cash burn. Capital preservation has superseded rapid capacity additions as automotive partners moderate pure electric vehicle targets. The Tennessee Department of Labor and Workforce Development has not published a WARN notice for the Oct. 9 reduction, as the 40 eliminated roles fall below the statutory threshold of 50 workers. SK On has not published a revised capital expenditure budget for the Stanton facility, and the business has not disclosed an updated permanent staffing target for the independent site. Commercial battery production at the Stanton plant remains scheduled for 2028, while Ford targets gas-powered truck assembly at the adjacent facility in 2029. ## Impact map | Event | Korea | China | Japan | Global impact | | --- | --- | --- | --- | --- | | Stanton battery fab downsizing | SK On pares US holding costs, deferring 2,500-job Tennessee ramp to 2028 | CATL and BYD face no direct local pouch cell competition from Stanton before 2028 | Panasonic Energy retains commercial lead supplying US truck packs while Korean rivals slow capex | North American battery cell overcapacity eases as Tier 1 suppliers delay uncommitted gigafactory lines | ## In this story - **Companies:** SK On - **Tickers:** 096770.KS - **Exposed:** Ford Motor Company - **Policy:** Subsidies - **Impact:** Capex, Cost Structure, Order Book ## Primary sources 1. tn.gov 2. bizjournals.com 3. localmemphis.com 4. businesspost.co.kr 5. thelec.kr --- Cite as: East Asia Brief, "SK On cuts 40 jobs at Tennessee battery site, delaying output to 2028," October 10, 2026. https://eastasiabrief.com/batteries-ev/sk-cuts-40-jobs-tennessee-battery-site-delaying-output-634