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South Korean joint venture battery manufacturers reduce investment in the United States and lay off employees

By Weibing Weibing 11/28/2023

As the North American electric vehicle industry faces sluggish demand,LG Energy Solution,a leading global electric vehicle battery manufacturer,announced this week that it will reduce its investment in North America and lay off employees.

South Korean joint venture battery manufacturers reduce investment in the United States and lay off employees

As one of the world's three largest electric vehicle battery manufacturers,LG New Energy will lay off 170 employees at its factory in Michigan to cope with industry challenges.The company has joint ventures with General Motors,Honda,and Hyundai in the United States.

LG New Energy is a global leading battery technology enterprise affiliated with LG Group in South Korea,with business covering three major areas:power batteries,small batteries,and energy storage systems.In the past 30 years,LG New Energy has achieved outstanding results in battery technology innovation and research and development,with over 34000 employees and 25000 patents,ranking first in the world in terms of patent quantity.

However,facing the current market environment,LG New Energy also has to make adjustments.A company spokesperson said,"We are actively optimizing our global operational network to adapt to changes in industry demand.Although this is a difficult decision,we believe it is necessary to ensure the company's long-term competitiveness."

According to reports,in addition to LG New Energy,SK On,another South Korean electric vehicle battery manufacturer,has also slowed down its expansion in the United States due to sluggish demand.These companies'investment and expansion plans in the United States are an important component of their global strategy,but now they must face reality and adjust their strategies and operations.

LG New Energy stated that it will do its best to provide assistance and support to the employees who have been laid off.A company spokesperson said,"We are well aware that this is a difficult period for laid-off employees and their families.We will provide necessary support and assistance,including vocational training and referral services,to help them smoothly transition to the next stage of life and work."

This layoff incident once again highlights the challenges faced by the electric vehicle industry.As consumer demand for electric vehicles gradually increases,car manufacturers and battery manufacturers need to adapt to this trend and adjust their production and research and development strategies to meet the constantly changing market demands.At the same time,they also need to face global supply chain issues and the constantly changing geopolitical environment.

Although the layoffs and slowing expansion plans of LG New Energy and SK On are worrying,this does not mean that the future prospects of the electric vehicle industry are bleak.On the contrary,these challenges provide visionary enterprises with an opportunity to adapt to new market environments through innovation and flexibility,and lead the development of the industry.