'We don't know, they don't know,' Uncertain next steps as GM pauses EV battery plant project
NEW CARLISLE, Ind.--- A major development is now on pause in Michiana. The electric vehicle (EV) battery plant in New Carlisle, a joint venture between General Motors (GM) and Samsung, is now halted, and it's unclear when construction will pick up again. St. Joseph County leaders say it's a waiting game.
While this announcement is significant for the region, it's not necessarily surprising to many, like New Carlisle resident Dan Caruso, who has long been outspoken about county issues.
"Were you surprised at all by this announcement?" ABC57's Annie Kate asked to which Caruso replied, "No, not in the least. I've seen this coming since Donald Trump was elected."
Along State Road 2 in New Carlisle, near the intersection at Larrison, a building has finally been built to house the factory, but GM officials confirmed Thursday that further work is officially paused.
"The writing was on the wall," Caruso said. "That you're not going to get the tax credits; all the incentives you need to build this place. All the people aren't going to get the incentives they need to buy the electric vehicles."
This announcement was also not surprising to Bill Schalliol, St. Joseph County's economic development director.
"I think they had hoped that the economy was going to turn a little bit," Schalliol said.
GM is among other auto companies scaling back their EV plans after losing tax incentives under the second Trump administration.
Still, Schalliol said he remains optimistic.
"We don't see this as a long-term problem," he said. "It's just kind of a short-term bump in the road."
ABC57's Annie Kate caught up with Schalliol Monday to ask what's next.
"I think we're just going to have to see," Schalliol said. "It's still pretty fresh. Again, is it a six-month pause? Is it a two-year pause? We don't know. They don't know. I think we're just all going to have to work together to figure that out."
St. Joseph County has a development agreement with GM and Samsung, which still stands despite the pause.
"So, at this point in time, they have until December 2027 to meet job creation goals and construction completion goals."
If the promises made in the development agreement between the county and GM aren't met, there are various actions the county could take, Schalliol said, such as clawbacks on the tax incentives given for the project.
"December 2027 is far away, and yet it's not that far away," Schalliol said.
Despite the pause, there's still a lot of work happening in New Carlisle. Schalliol said this summer, construction will start on a diamond interchange at the intersection of State Road 2 and Larrison.