GA EV Battery Maker Settles Fire Lawsuit for $31M

GA EV Battery Maker Settles Fire Lawsuit for $31M

Introduction

SK Battery America, a North Georgia-based electric vehicle battery manufacturer, has agreed to a $31 million settlement with Metro Site recycling center, which was destroyed in a fire in July 2023.

The blaze occurred after the recycling facility unknowingly received lithium-ion battery scraps mixed with other recyclables from SK Battery’s nearby factory.

Metro Site, which is not authorized to handle batteries, had no knowledge of the materials in the shipment. The incident led to an investigation by Georgia’s Environmental Protection Division, resulting in a $33,000 fine against SK Battery. While the company did not admit liability in the settlement, it agreed to pay $20 million in punitive damages and $11 million for tort-related claims to Metro Site.

“SK Battery America values its partnership with the Georgia community and is committed to having a positive impact on the area,” the company said. The settlement underscores the risks associated with the growing electric vehicle and battery industry, which has attracted significant investments in Georgia, transforming it into a national manufacturing hub.

The fire in 2023 was one of several incidents at Metro Site caused by battery-related materials. Since 2020, Banks County Fire Chief noted that local firefighters have responded to four fires at the facility due to battery scraps. The 2023 blaze, which burned for four days, required 3 million gallons of water to extinguish.

In addition to the settlement with Metro Site, SK Battery is facing a separate lawsuit from Banks County, seeking compensatory damages for the significant resources used to fight the fire. The county also claims the fire posed a threat to nearby Banks Fire Station 31, which is adjacent to Metro Site. This lawsuit is still ongoing. SK Battery has implemented stricter procedures for handling and disposing of battery materials in response to the incident.