- GM’s battery plant with Samsung was supposed to house 1,600 employees.
- The plant would initially have 30 GWh of capacity for up to 300,000 EVs.
- The site may switch from nickel-rich batteries to lithium iron phosphate batteries.
Yet another electric vehicle battery plant in the US is on shaky ground due to a drop-off in local EV demand. The site in question is the massive facility that GM and Samsung are building near New Carlisle, Indiana, and its future remains uncertain.
The $3.5 billion plant was announced three years ago with initial plans for it to produce nickel-rich prismatic batteries. GM anticipated the site would initially have 30 GWh of capacity, meaning it could produce battery packs for up to 300,000 EVs annually. Capacity was then supposed to ramp up to 36 GWh.
Read: GM’s EV Dream Plant Is Now A Gas Powerhouse In The Making
However, due primarily to the Trump administration axing the $7,500 federal EV tax credit, demand for EVs in the US has fallen off a cliff, making it difficult for car manufacturers and tech firms to justify the investment in huge plants like this.
Korea JoongAng Daily understands that GM intends on finishing construction of the plant’s exterior before pausing work there in June. It’s possible the car manufacturer could then completely withdraw from its joint venture with Samsung, which is exactly what it did in late 2024 when it pulled out of its partnership with LG Energy Solution on a Michigan battery plant. GM reportedly sold its stake to LG for $1 billion.
GM’s EV Mistakes
An alternative is for GM and Samsung to remain partners and instead manufacture more common lithium-iron phosphate batteries at the site.
If GM pulls out of its joint venture with Samsung, it’ll come at a cost. The company has already revealed it took up to $8.7 billion in EV-related charges and write-downs in 2025, and the money invested in the Indiana plant could be yet another misstep in its EV strategy. The site was supposed to employ up to 1,600 workers and initially set to set producing battery cells this year, although this was later delayed to 2027 a couple of years ago.
