GM, Samsung delay operation of joint battery plant to 2027: AP

NEW YORK -- 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 United States, reported The Associated Press (AP) on Wednesday.

The companies finalized their agreement on Tuesday to jointly run the new factory in New Carlisle, Indiana, near South Bend, but said production would not start until 2027, according to the report. 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 US are still growing but have slowed as more practical consumers worry about range and the ability to recharge while traveling," said AP. "Market leader Tesla Inc. has cut prices, forcing others to follow."

US electric vehicle sales overall rose about 7 percent during the first half of the year to 599,134, according to Motorintelligence.com. EVs accounted for 7.6 percent of the US 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.