Ultium Cells, the joint battery venture between General Motors and LG Energy Solution, has informed employees at its Warren, Ohio plant that the return-to-work date for those on temporary layoff has been moved to August. Workers assigned to temporary layoff have been idle since January, after initially being given a June timeline for returning.
In a statement to Reuters, the company reiterated its revised timeline: "Ultium Cells Ohio employees who have been on temporary layoff status are now expected to return in August." An internal notice to staff, an image of which was viewed by Reuters, attributed the shift to what it described as "a detailed analysis of the electric vehicle market" so far this year.
Ultium Cells supplies battery cells to GM for use in its electric vehicles. The venture last fall implemented workforce reductions that included a temporary layoff of 850 employees and permanent separations of 480 workers at the Warren facility. This month the company brought a limited number of employees back to the otherwise idled plant.
The company statement and internal notice framed the decision as a response to market conditions. Automakers, including GM, reduced EV production after the loss of a $7,500 federal tax credit in late September. While EVs continue to be manufactured and sold, automakers have cut factory output to align production with current demand.
The decision to delay rehiring keeps a substantial segment of the Warren workforce on temporary layoff through the summer. The company tied the timing change directly to its analysis of this years electric vehicle market performance, and provided the August return month as its updated expectation.
Ultium Cells operates as a supplier to GM and its production decisions at the Warren plant reflect both the joint venture's operational planning and broader demand patterns for electric vehicles, according to the internal communication and the corporate statement.
The company has not provided additional details about the number of employees affected by the most recent postponement beyond those already identified as on temporary layoff, nor did it expand on what elements of the EV market analysis prompted the timeline change.