General Motors and Samsung SDI have paused construction work on their planned $3.5 billion electric vehicle battery plant in New Carlisle as weakening U.S. electric vehicle demand raises uncertainty around large-scale battery investments.
The facility, first announced in 2023, was initially designed to produce nickel-rich prismatic battery cells with planned annual capacity of 30 GWh, later expected to expand to 36 GWh. The plant was projected to supply battery packs for as many as 300,000 electric vehicles per year.
However, slowing EV demand in the United States and changes to federal EV incentives have pressured automakers to reassess investment plans tied to battery manufacturing expansion.
“Construction of the battery cell plant in New Carlisle, Indiana will be paused to align production capacity with current demand,” GM spokesperson Kevin Kelly said in a statement to The Detroit News. “GM and Samsung SDI will communicate plans for the site at a future date.”
According to the report, the companies plan to complete the building’s exterior structure before determining the long-term future of the project.
The pause adds to broader uncertainty surrounding U.S. EV battery manufacturing projects as automakers adjust production strategies following softer-than-expected EV sales growth.
The Indiana facility had originally been scheduled to begin battery production this year before the timeline was later pushed back to 2027. The project was expected to create up to 1,600 jobs.
The development also follows GM’s decision in late 2024 to exit another battery joint venture with LG Energy Solution involving a Michigan battery plant, with GM reportedly selling its stake for approximately $1 billion.
Industry analysts have suggested one possible alternative for the Indiana facility could involve shifting production toward lithium-iron-phosphate (LFP) batteries, which are generally less expensive than nickel-rich chemistries and are increasingly being adopted for lower-cost EV models.
GM previously disclosed up to $8.7 billion in EV-related charges and write-downs during 2025 as the company adjusted its electrification strategy amid changing market conditions.