Chattanooga Times Free Press

Georgia county sues SK Battery over 2023 recycling center fire

- BY ZACHARY HANSEN AND DREW KANN

A Georgia county has filed a lawsuit againstone of the state’s largest manufactur­ers after discarded battery cells were improperly shipped to a recycling facility, sparking a fire last summer that burned for days and totaled the building.

Banks County filed a lawsuit in early May against SK Battery America Inc. to seek compensato­ry damages for the “significan­t government resources” used to battle the blaze.

It took firefighte­rsfour days and more than 3 million gallons of water to extinguish the July 2023 inferno at Metro Site recycling center, which sits in Jackson County just across the Banks Countyline. The facility is about 70 miles northeast of downtown Atlanta.

The complaint also says the fire endangered Banks Fire Station 31, which is adjacent to Metro Site’s property.

Firefighte­rs and investigat­ors with Georgia’s Environmen­tal Protection Division determined the blaze was caused by lithium-ion battery cells that were mistakenly shipped to Metro Site from SK Battery’s $2.6 billion factory in Commerce. The charred facility was not permitted to handle batteries among its recyclable­s. Metro Site also sued SK Battery, alleging the factory’s management was careless with overseeing its battery scraps.

In its complaint, lawyers for Banks County said the government filed its lawsuit to recoup “all harms and losses and “to prevent (SK Battery) from ever causing this type harm again.”

SK Battery declined to comment on the two pending lawsuits.

“SK Battery America has procedures in place to ensure proper handling of materials,” the company said in a statement. “SK Battery America continues to cooperate with the investigat­ion.”

Since 2020, Banks County Fire Chief Steve Nichols said his firefighte­rs assisted Jackson County firefighte­rs with four blazes caused by battery scraps at Metro Site.

The ensuing lawsuit by Metro Site’s owner, Scott Ledford, alleged that SK Battery has “lost track” of nearly 2,400 defective batteries over the past two years and details 11 alleged incidents where it intercepte­d mistakenly shipped battery cells from SK Battery’s factory.

SK Battery, a subsidiary of Korean conglomera­te SK Group, was one of Georgia’s first forays into the EV and battery industries. State and local leaders offered the company nine-figure incentive packages for both the Commerce facility and a forthcomin­g joint battery factory between another SK business, SK On, and Hyundai Motor Group in Bartow County.

Ledford’s attorney, Gus McDonald, said SK Battery has amassed a track record of negligence, including multiple safety violations and fines levied by the U.S. Department of Labor’s Occupation­al Safety and Health Administra­tion. McDonald said the company needs more oversight.

The EPD on April 17 published a negotiated consent order with SK Battery that fined the company $33,000 after an investigat­ion in the Metro Site fire.

In court documents, SK Battery alleged the mistake was made by its shipping contractor, which is not a defendant in the suit. McDonald, the attorney for Metro Site, said the recent consent order is “at odds” with SK Battery’s arguments in court.

An amended complaint filed by Metro Site in early May asks for damages to be determined at trial “without limitation or cap. It also asks for SK to be sanctioned for spoliation, alleging the company “lost and destroyed critical evidence.” McDonald said the case is scheduled for trial in August.

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