General Motors announced a one-year delay in the opening of its new $3.5 billion EV battery plant, a joint venture with Samsung SDI, now set to commence operations in 2027.
This decision comes amid a growing trend among traditional automakers to adapt to shifting market dynamics favoring hybrid over purely electric vehicles.
Initially planned to start in 2026, the factory located in New Carlisle, IN, has pushed its timeline due to "market conditions and contract details," according to a recent statement from GM. This delay mirrors a similar shift by Ford and other industry players, who are increasingly investing in hybrid technology as consumer interest wanes for full EVs. Despite a 7% rise in EV sales in the first half of 2024, the allure of hybrids is gaining ground.
The joint venture plans to employ 1,600 workers at the new facility. However, unresolved contract negotiations and pending union discussions have contributed to the delay. The United Auto Workers (UAW) has indicated the plant and its future workforce will be included in forthcoming bargaining sessions, with unionization dependent on a majority agreement among employees.
