Construction momentum at the $3.5 billion GM battery plant in New Carlisle has been temporarily disrupted as engineers reevaluate internal layouts and production needs, prompting a wave of short-term worker redeployments.
Local officials confirm that some workers were laid off from the active portion of the site, though they remain employed with contracting firms and have been moved to other project locations while paused sections await redesign approval.
The slowdown reflects a strategic reassessment tied to GM’s shifting near-term approach to electric vehicle output. The Detroit News recently reported that the automaker is scaling back its rapid EV expansion timeline while still advancing essential infrastructure.
Samsung — GM’s joint-venture partner on the project — is currently assessing whether newer production line concepts can fit within the original building footprints. Based on lessons learned from Samsung’s similar facility under construction in Kokomo, leadership is working to ensure the Indiana site can support the latest generation of battery assembly systems.
“And if they need to expand the building, how does that affect the mechanicals and utilities and vents and all those kinds of things,” asked Bill Schalliol, St. Joseph County Economic Development Director. He emphasized that the goal is to finalize the correct engineering decisions upfront rather than make costly modifications later.
Schalliol added that updates in Kokomo have revealed necessary tweaks to maximize efficiency before installation at the New Carlisle location.
“In this case here they had designed the production lines and as they look to upgrade to this new style line of production lines that’s what’s causing this pause. They just wanna make sure again if they install everything that they put it in once and that they put it in right,” said Schalliol.
Although the pause triggered temporary worker moves, construction continues elsewhere on the site — steel framing, exterior walls, and foundational infrastructure remain active. Officials remain optimistic that the redesign delays won’t derail long-term scheduling.
“I think it’s a very short term thing, our understanding early on when we were putting steel up and putting the walls on is that they wanted to have the building sealed up before winter hit obviously that puts a little delay on getting the whole building sealed up, but I would imagine that once they get the go ahead that they’ll ramp everything back up,” said Schalliol.
He added that supplier activity remains a positive indicator of continued progress.
“We actually have one of the suppliers, their due diligence team called today to get reengaged. So, we see that as a sign that whatever is happening is a short-term thing and the suppliers will start to come to the site,” said Schalliol.
Despite the interruption, GM and Samsung are pushing to complete the facility by the end of 2027, positioning St. Joseph County as a key node in the Midwest’s growing EV and battery supply chain.
County leaders characterize the situation as a typical part of constructing a complex mega-project — ensuring every component is future-ready before full-scale installation.
Originally reported by Raelynn Lee,WSBT22Reporter in WSBT.
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