General Motors has paused construction of its $3.5 billion battery cell plant in New Carlisle, Indiana, a joint venture with Samsung SDI that was expected to create 1,600 jobs.
The decision comes as the automaker faces $8.7 billion in EV-related charges and a sharp decline in electric vehicle demand in the U.
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S. , partly due to the elimination of the federal $7,500 EV tax credit.
Plant Details and Timeline
Announced three years ago, the facility was initially planned to produce nickel-rich prismatic batteries with a capacity of 30 GWh, enough for up to 300,000 EVs annually.
Capacity was later slated to increase to 36 GWh.
Production was originally expected to begin this year but was delayed to 2027. Now, GM has confirmed that construction will be paused to align with current demand.
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GM spokesperson Kevin Kelly stated that the company aims to finish the plant's exterior as soon as possible, but further plans for the site will be communicated at a future date.
Possible Outcomes
GM could withdraw from the joint venture with Samsung, similar to its 2024 exit from a Michigan battery plant partnership with LG Energy Solution, where it sold its stake for $1 billion.
Alternatively, GM and Samsung might continue their partnership but switch production to lithium iron phosphate batteries, which are more common and less expensive.
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The Indiana plant's pause adds to GM's EV strategy challenges, as the company already recorded up to $8.7 billion in EV-related charges and write-downs in 2025.
