Ultium Cells has delayed the return of hundreds of workers currently on temporary layoff status at its battery cell manufacturing facility in Warren, Ohio, as electric vehicle demand remains below earlier industry expectations.
According to a Reuters report, employees who had previously been informed they could return to work in June are now expected to return in August following a review of market conditions.
Return Timeline Extended
The battery manufacturing joint venture between General Motors and LG Energy Solution confirmed the revised schedule in a statement provided to Reuters.
“Ultium Cells Ohio employees who have been on temporary layoff status are now expected to return in August,” the company said.
Reuters reported that an employee communication reviewed by the news agency stated that the decision followed “a detailed analysis of the electric vehicle market” during the first several months of 2026.
The affected workers have been on temporary layoff status since January.
Plant Supports GM Electric Vehicle Production
The Warren facility is a key part of General Motors’ electric vehicle supply chain, producing battery cells used in a range of Ultium-based electric vehicles.
However, battery production plans have been affected by slower-than-expected growth in electric vehicle demand across the North American market.
Automakers have increasingly adjusted production schedules and manufacturing plans as they seek to align vehicle output with current consumer demand levels.
Workforce Reductions Announced Previously
Last year, Ultium Cells announced plans to temporarily lay off approximately 850 workers at the Ohio facility while also eliminating around 480 positions on a permanent basis.
The company has since recalled a limited number of employees, although most affected workers remain off the job.
The latest postponement extends the expected return timeline by approximately two months for workers who were anticipating a June return.
Industry-Wide Demand Adjustments
The decision reflects broader adjustments occurring across the automotive industry as manufacturers reassess electric vehicle production plans.
Several automakers have revised investment schedules, production targets and inventory strategies amid changing market conditions.
The expiration of the federal US$7,500 electric vehicle tax credit in September 2025 has also influenced purchasing patterns and market forecasts, prompting some manufacturers to review production volumes.
Despite the current slowdown, General Motors has continued to state that it remains committed to long-term electrification plans and battery manufacturing investments while adapting production schedules to market demand.
For workers at the Warren facility, the revised timeline means the anticipated return to production operations has been pushed back until at least August 2026.
