Biden-Harris Administration Gets Disappointing News About EV Battery Plant It Has Touted
President Joe Biden's push to promote electric vehicles (EVs) has encountered a significant obstacle.
The Wall Street Journal reported on Tuesday that General Motors (GM) has delayed its plans to build a battery plant in Indiana by about a year. Originally slated to begin production in 2026, the plant—located in New Carlisle and developed in partnership with Samsung SDI—will now start operations in 2027, with a projected cost of $3.5 billion.
This isn't the first time GM has adjusted its manufacturing schedule. The Wall Street Journal also noted that in July, GM announced delays for a new Buick EV and an EV truck factory. Additionally, GM scaled back its ambitious goal to have enough factories producing one million EVs by next year.
The plans for the Indiana battery plant were made official in June 2023, as reported by Inside Indiana Business. The announcement promised 1,700 new jobs in the area, and Indiana's GOP Governor Eric Holcomb expressed his enthusiasm.
“This historic investment is further proof that Indiana has turned it up and shifted into a higher gear when it comes to helping create the future of mobility and more customer options out on the open road,” Holcomb stated.
When the plant was officially announced, Biden echoed his usual pro-EV rhetoric.
“Our work to build a clean energy economy is unleashing record private sector manufacturing investment, driving companies to shore up our supply chains here at home, and lowering energy costs for working families,” Biden said.
However, the delay highlights a significant challenge for manufacturers investing billions in EVs—consumers are not eager to embrace them.
Despite the president and the Environmental Protection Agency (EPA) introducing emissions standards in March that would require 70 percent of new car purchases to be electric or hybrid by 2032, many Americans are reluctant to move away from gas-powered vehicles.
Though rising fuel costs may make EVs seem appealing, studies indicate that owning an EV is more expensive than a gas-powered car. A survey by Consumer Reports from November 2023 revealed that EVs from the past three model years had 79 percent more problems than their gas-powered counterparts, while hybrids were reported to be less problematic.
Tuesday's news reflects the general sentiment among consumers about EVs.
This initiative, driven from the top, is not something that working people have requested.
People need reliable vehicles to commute and take care of their families, and for many, those vehicles remain gas-powered.
Experience supports this, and consumer demand confirms it.