NEW CARLISLE, Indiana — General Motors and Samsung SDI moved Sunday to clarify the full scope of their decision to pause construction on the $3.5 billion battery cell manufacturing plant in New Carlisle, Indiana, releasing a joint statement that acknowledged shifting electric vehicle demand projections as the primary driver behind the suspension.

The two companies confirmed that construction activities at the Stellantis-adjacent site have been halted pending a strategic review expected to conclude by late summer 2026. GM executives stated that the pause reflects a broader recalibration of the automaker's EV rollout timeline, following slower-than-projected consumer uptake of its Ultium-platform vehicles in North American markets.

Samsung SDI, which had committed to supplying cylindrical and prismatic cell formats from the facility, said it remains a committed partner to GM but acknowledged the review could result in a revised production timeline or a scaled-back initial phase. The South Korean battery maker noted that demand signals from other North American customers would factor into any restructured agreement.

The announcement drew immediate reaction from Indiana state officials, who had extended significant tax incentives to attract the plant to St. Joseph County. Governor Mike Braun's office issued a statement expressing concern and requesting a briefing from both companies, while local labor unions warned that the pause puts an estimated 1,700 promised jobs in jeopardy.

Industry analysts at BloombergNEF noted that the GM-Samsung pause is the latest in a series of US battery plant slowdowns — joining similar pauses by Ford and SK On at their BlueOval facilities — and reflects a sector-wide reckoning with the gap between announced EV ambitions and actual consumer demand. The developments are expected to trigger renewed debate in Washington over EV tax credit structures under the Inflation Reduction Act.