New Carlisle, Indiana – General Motors announced a delay in the start of production at their new electric vehicle battery factory in New Carlisle, Indiana. Initially projected to begin operations in 2026, the factory now anticipates that battery manufacturing will not commence until 2027 at the earliest. Despite the setback, construction at the site is currently underway.
The decision to postpone production at the plant comes as GM finalizes a joint venture deal with Samsung, reaffirming their commitment to expanding electric vehicle (EV) production. While some automakers are scaling back investments in response to uncertainties in the industry, GM’s partnership underscores their dedication to increasing EV manufacturing capabilities.
Situated on a 680-acre site in New Carlisle, the new factory is expected to create over 1,600 jobs upon completion. To incentivize the project, GM and Samsung will receive 100 percent tax abatements for a decade from the local community. In return, GM has agreed to pay a $4.5 million infrastructure fee annually for ten years to cover various costs, including sewer extensions, road improvements, and fiber optic cable installations.
Once operational, the facility will produce nickel-rich prismatic and cylindrical cells, differing from the pouch-style packs utilized in GM’s Ultium battery vehicles. GM’s strategic shift to Samsung SDI for battery supply follows a recall of Chevy Bolt electric vehicles equipped with LG batteries, which were prone to fires.
Apart from the New Carlisle plant, GM is constructing three other battery factories in the United States, with a combined annual capacity of 140GWh. These facilities are located in Lordstown, Ohio; Spring Hill, Tennessee; and Lansing, Michigan. The new battery plant in Indiana is part of a broader trend of new EV facilities driven in part by tax incentives approved during the Biden administration.
Globally, the demand for batteries is on an upward trajectory, with production expected to surge from 95.3GWh in 2020 to 410.5GWh by 2024, according to data and analytics company GlobalData. This growth reflects the industry’s response to the increasing shift towards electric vehicles and the need for enhanced battery manufacturing capacities.