Next-gen battery materials manufacturer Group14 Technologies laid off an undisclosed number of workers as tariff uncertainties and new federal policies create significant obstacles for the clean energy sector.
The company, which has facilities in Washington and South Korea, confirmed for GeekWire that it had taken steps on Tuesday to “rebalance our workforce to ensure the long-term resilience and competitiveness of our business.”
Group14 recently disclosed that it was delaying the start of production at its flagship battery materials plant in Eastern Washington’s Moses Lake from an initial target of late 2024 to a start date in early 2026.
“Shifts in demand, and uncertainties in global trade relationships have impacted our industry,” said spokesperson Katie Rolnick by email. “We are taking proactive steps to align our operations with current realities while positioning ourselves for future growth.”
Rolnick added that the company is continuing to support its joint venture in South Korea with electronics company SK materials. That plant will begin operating at full capacity this month and its output will be available to Chinese customers, avoiding the impact of U.S tariffs.
Group14’s headcount is 400 people. The layoffs impacted only its U.S. workforce.
The company has developed a silicon anode material for use in lithium-ion batteries that holds more power and requires less time for recharging. The product is suitable for use in electric vehicles, consumer electronics and utility-scale batteries that can help meet power demand for data centers.
The Senate on Tuesday narrowly passed a massive domestic policy bill that slashes clean energy supports. The Senate’s version of the legislation went slightly easier on battery, nuclear and geothermal projects than the previously approved House version of the bill. It retained a full tax credit for these projects if construction begins before the end of 2033, and phases out the credit completely by 2036.
But the Senate took a harder line on a $7,500 tax credit to cut the cost of EVs for consumers, eliminating the break by the end of September, instead of the House deadline of the end of the year. The two chambers are aiming to finalize the bill this week.
In a GeekWire interview last month, Group14 CEO Rick Luebbe shared areas of optimism for his company’s prospects despite recent headwinds. Luebbe said global battery demand will continue long term and he was hopeful that data centers represent a large, new market for batteries.
“We are behind a whole new opportunity in advanced materials production for all kinds of applications that are really critical,” Luebbe said.
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