General Motors plans to close its Brownstown battery assembly plant in Michigan in the summer of 2027. It is moving to restructure its battery business as slowing electric vehicle demand coincides with a reshaping of its production strategy.

InsideEVs reported on Oct. 20 that GM said it plans to close the facility next summer when the Brownstown plant's lease expires.

The plant, which began operating in 2009, spans about 480,000 square feet, or about 44,600 square metres. It has produced high-voltage batteries for the luxury electric vehicle Cadillac Celestiq, as well as batteries and electric drive units for the hybrid sports car Chevrolet Corvette E-Ray.

Staffing has also been cut sharply. About 300 people once worked there, but headcount fell to fewer than 12 after production was reduced. GM told employees earlier this year of the closure plan and offered jobs at other nearby facilities.

The closure is linked to adjustments in GM's electrification strategy. GM withdrew earlier this year from a battery joint venture project in Indiana it had been pursuing with Samsung SDI. In 2024, it also pulled out of a $2.5 billion battery plant project in Lansing, Michigan, leaving LG Energy Solution to lead the project.

Its hydrogen fuel cell business is also under review. GM ended fuel-cell cooperation with Honda, citing difficulty in securing profitability. A $55 million investment plan it had pursued for related production facilities was also scrapped.

GM is reviewing options to take over the facility's long-term lease rights and use it for other purposes, but it has not finalised specific plans.

Weak electric vehicle sales are also a burden. GM's U.S. electric vehicle sales in the third quarter this year fell 61.7 percent to 25,473 units from 66,501 a year earlier. The third quarter last year also saw demand concentrate ahead of the end of a $7,500 federal tax credit for electric vehicle purchases, a base effect that should be considered.

GM is continuing electric vehicle production, but has recently put more weight on producing gasoline vehicles. The plant closure is seen as part of a strategy to adjust the scale of electrification investment to match actual market demand.