“In response to slower near-term EV adoption and an evolving regulatory environment, General Motors is realigning EV capacity,” the company said in a statement about the cuts at its all-electric plant, while maintaining that it “remains committed to our U.S. manufacturing footprint.”
GM added that Ultium Cells is also “adjusting production in response to recent changes in customer plant demand.” The company said that battery cell production in Warren, Ohio and a facility in Spring Hill, Tennessee would be paused beginning January 2026.
Per the The Detroit News, 850 workers at the Ohio plant are slated for “temporary layoffs,” along with another 700 employees in Tennessee.
GM says that impacted employees “may be eligible to continue receiving a significant portion of their regular wages or salary, plus benefits.” The company said it will use the pause to make upgrades at both facilities, and it anticipates resuming operations by the middle of next year.
The dwindling EV adoption cited by GM Wednesday arrives shortly after a recent expiration of federal tax credits. Before Sept. 30, new EVs came with a $7,500 federal tax credit, and used ones included up to $4,000. But prospective buyers can no longer qualify. The incentive was ended as part of the massive tax and spending cut bill Congress passed in June.