Construction at General Motors Co. and Samsung SDI’s $3.5 billion electric vehicle battery plant near New Carlisle, Indiana, has slowed as layoffs hit the project earlier this month. While work continues, both companies have confirmed a reduction in construction labor at the 680-acre site, adding uncertainty while broader EV market challenges play out.
Contractor Barton Malow acknowledged the staffing cuts but did not give specifics on the number of workers affected or those still on the job. GM spokesperson Kevin Kelly similarly confirmed layoffs had occurred but would not share further details, saying only that construction is ongoing.
The slowdown appears tied to strategic design revisions currently under evaluation by GM and Samsung — changes that could shift the battery technologies the facility will ultimately produce. The plant had initially been slated for high nickel prismatic EV batteries, but final decisions remain under review.
St. Joseph County economic development director Bill Schalliol said that despite the pullback, progress continues on foundational aspects of the project. Most steel structures for the two major buildings have been erected, and installation of exterior wall panels has recently started.
This latest development comes as GM trims EV spending and refocuses attention on its gas-powered trucks and SUVs — vehicles still generating the company’s strongest profits. Federal EV incentives have been rolled back under President Donald Trump, and consumer demand has not yet aligned with automaker forecasts.
GM earlier this week announced broader job cuts affecting “thousands of workers” across EV and battery facilities in Ohio and Tennessee.
Barton Malow said in a statement that it “recently had to layoff some of our workforce” and added that such staffing fluctuations are “an unfortunate part of the natural ebb and flow of the construction business.” The firm emphasized its commitment to supporting displaced employees, adding, “We recognize the impact it has on our team members and their families, and commit to supporting them through this transition and working to get them back onto this or another project shortly,” according to spokesperson Eric Fish.
The project was already pushed back from its initial opening date. GM and Samsung now aim to start operations in December 2027, a year later than originally planned. Schalliol said a nearby supplier has paused its development plans due to the construction slowdown, but he stressed that long-term prospects for the site remain strong.
“We’re playing the long game,” Schalliol said, expressing confidence that the facility will open and produce advanced energy-storage systems — even if it’s not the exact technology originally envisioned. GM, he added, didn’t invest billions “to convert this into the world’s largest pickleball facility.”
Alongside the battery installation, the region is also seeing major construction activity from a large Amazon.com Inc. data center campus intended to support AI infrastructure. That dual build-out has sparked concerns from some residents over environmental impacts, especially water usage, land disruption, and the shift from agricultural landscapes to industrial operations.
Dan Caruso, who lives a mile from the battery site, said activity at Amazon’s project continues to move rapidly while GM-Samsung’s progress has clearly slowed.
“I don’t see any way, especially with the current environment, with the direction of (Trump’s) ‘drill baby drill,’” he said. “They’re not going to get the energy credits they need to put a battery plant in place.”
Originally reported by Luke RamsethSummer Ballentine in The Detroit News.
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