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As demand in the global electric vehicle industry slows, South Korean battery makers are scaling back their investments and laying off workers in North America. LG Energy Solution announced in November that it would cut 170 jobs at its Michigan plant after launching joint ventures in the US with GM, Honda and Hyundai Motor.

Another South Korean battery maker, SK On, signed an $11 billion deal with Ford Motor in 2021 to advance electric vehicles. SK On laid off more than 100 workers at its U.S. plant in September and delayed plans to build a second plant in Kentucky in a joint venture with Ford. The plant was originally scheduled to begin production in 2026.

The president of an automotive convergence technology institute in South Korea said that the power battery market appears to be undergoing a correction, and there are growing concerns about overcapacity because the industry has invested too much in a short period of time. In recent months, Ford, GM and Tesla have all suspended plans to expand electric vehicle production capacity because consumer demand has been weaker than expected.

LG New Energy said it will cut nearly 10 percent of its workforce at its wholly owned plant in Michigan, but expects a bright future, with plans to hire about 1,000 more workers after the expansion of its Michigan plant is completed in the third quarter of 2024.

Japanese battery giant Panasonic, which supplies batteries for higher-end models such as Tesla's Model S and Model X, has also cut back on domestic production of automotive batteries. Panasonic is continuing to invest in its Nevada plant, which benefits from US subsidies to produce batteries for lower-priced Tesla vehicles. But Panasonic is not slowing down in the U.S. and is considering setting up a third plant in the country.

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