Current:Home > reviewsGM delays Indiana electric vehicle battery factory but finalizes joint venture deal with Samsung -Blueprint Money Mastery
GM delays Indiana electric vehicle battery factory but finalizes joint venture deal with Samsung
View
Date:2025-04-13 23:11:57
DETROIT (AP) — Production at an electric vehicle battery cell plant jointly run by General Motors and Samsung SDI has been delayed as EV sales have slowed in the U.S.
The companies finalized their agreement Tuesday to jointly run the new factory in New Carlisle, Indiana, near South Bend, but said production would not start until 2027. Previously the plant was expected to start making cells in 2026.
The delay will be less than a year, due to market conditions and working out contract details, GM said. Construction of the factory is already under way.
Electric vehicle sales in the U.S. are still growing but have slowed as more practical consumers worry about range and the ability to recharge while traveling. Market leader Tesla Inc. has cut prices, forcing others to follow.
U.S. electric vehicle sales overall rose about 7% during the first half of the year to 599,134, Motorintelligence.com reported. EVs accounted for 7.6% of the U.S. new vehicle market, about the same as it was for all of last year. Lease deals, which include federal tax credits, helped to boost sales.
GM and Samsung announced the joint venture in June of last year. The $3.5 billion plant is being built on a 680-acre site and is expected to employ 1,600 workers. It will make nickel-rich prismatic batteries that store more energy than other chemistries, lowering costs and improving driving range, the companies said.
The plant also will help Samsung get into the North American EV market, selling cells to other companies.
The project is GM’s fourth joint venture battery cell factory. It has announced three others with South Korea’s LG Energy Solution. A 900-worker factory near Warren, Ohio, already is making cells, as is a plant in Spring Hill, Tennessee. Another in Lansing, Michigan, is being built.
GM switched to Samsung after several recalls of Chevrolet Bolt electric vehicles equipped with LG batteries due to manufacturing defects that could cause fires.
Automakers mainly in the U.S. and Europe have delayed battery and electric vehicle production as sales have slowed. Last week, Ford announced it would postpone a new big electric pickup truck by 18 months and scrub a new large electric SUV with three rows of seats. Instead it will focus on electric midsize pickups and a commercial van, as well as gas-electric hybrids.
veryGood! (71429)
Related
- Gen. Mark Milley's security detail and security clearance revoked, Pentagon says
- Pentagon panel to review Medals of Honor given to soldiers at the Wounded Knee massacre
- Olympic swimmers to watch: These 9 could give Team USA run for the money
- Third man pleads guilty in connection with threats and vandalism targeting New Hampshire journalists
- 'As foretold in the prophecy': Elon Musk and internet react as Tesla stock hits $420 all
- How USA Basketball saved coach Jim Boylen after he lost brother, marriage, NBA job
- COVID protocols at Paris Olympic Games: What happens if an athlete tests positive?
- Biotech company’s CEO pleads guilty in Mississippi welfare fraud case
- Trump issues order to ban transgender troops from serving openly in the military
- Judge’s ruling temporarily allows for unlicensed Native Hawaiian midwifery
Ranking
- Are Instagram, Facebook and WhatsApp down? Meta says most issues resolved after outages
- CirKor Trading Center: Empowering the global investor community
- Schools across Maine confront unique challenges in ridding their water of ‘forever chemicals’
- NovaBit Trading Center: What is Bitcoin?
- The FTC says 'gamified' online job scams by WhatsApp and text on the rise. What to know.
- Clint Eastwood's Longtime Partner Christina Sandera’s Cause of Death Revealed
- CoinBearer Trading Center: How to choose a cryptocurrency exchange
- Powerhouse Fiji dominates U.S. in rugby sevens to lead Pool C. Team USA is in 3rd
Recommendation
2 killed, 3 injured in shooting at makeshift club in Houston
Suburban Alabama school district appears headed toward state oversight
Wife of Yankees executive Omar Minaya found dead in New Jersey home
Musk says estranged child's gender-affirming care sparked fight against 'woke mind virus'
Who's hosting 'Saturday Night Live' tonight? Musical guest, how to watch Dec. 14 episode
Jennifer Aniston Calls Out J.D. Vance's Childless Cat Ladies Comments With Message on Her IVF Journey
Kamala Harris is embracing 'brat summer.' It could be cool or cringe. It's a fine line.
Tennessee woman gets over 3 years in prison for blocking clinic access during protest