General Motors pauses EV battery plant in Indiana
Completion of a planned $3.5 billion General Motors Co. battery plant in Indiana has been paused as the Detroit automaker and partner Samsung SDI adjust to lower-than-expected demand for electric vehicles.
GM aims to finish construction of the exterior of the New Carlisle, Indiana, plant as soon as possible. After that, it's unclear what will be done with the site.
"Construction of the battery cell plant in New Carlisle, Indiana will be paused to align production capacity with current demand," according to a statement provided by GM spokesperson Kevin Kelly. "GM and Samsung SDI will communicate plans for the site at a future date."
The Detroit News in October first reported construction delays and layoffs at the 680-acre site, which is just south of the Michigan border and west of South Bend.
More: Construction layoffs hit GM-Samsung EV battery project in Indiana
The plant was slated to make nickel-rich prismatic batteries for use in EVs, but the project has been repeatedly delayed amid slowing consumer demand and EV policy reversals by the Trump administration and Republican-controlled Congress.
GM and other U.S. automakers have pulled back on EV production after $7,500 tax credits for buyers and lessees ended last year. Without incentives, consumer interest in EVs has slowed.
Under President Donald Trump, the auto industry also no longer faces strict enforcement of greenhouse gas emissions limits that had pushed manufacturers to make more EVs and hybrids.
Bill Schalliol, the county economic development leader for the New Carlisle area, said GM notified local officials about the delay a few weeks ago. He said GM and Samsung SDI have been good partners, adding that locals are "waiting it out" with optimism that economic conditions will improve and the plant will be put to use.
"Pause is a big word," Schalliol said. "But it doesn't have the finality to it."
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This story was originally published May 20, 2026 at 6:52 PM.