LANSING, Mich. (Michigan News Source) — Electric vehicle battery manufacturer Akasol will stop its Michigan operations this spring, laying off 188 workers as production moves out of state.

A state WARN notice indicates that Akasol, a subsidiary of BorgWarner Inc., will shut down its Warren and Hazel Park facilities, with closures occurring between April and July.

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“Consistent with those efforts, we have decided to shift all battery production from our Hazel Park and Warren, Michigan, locations to our existing plant in Seneca, South Carolina,” a BorgWarner spokesperson told The Detroit News.

Industry experts point to financial pressures in the EV sector, particularly high research and development costs, as a key factor in the decision.

“Everything around the EV business is challenging. Until you get to a certain level of scale, the R&D costs are extensive,” Sam Abuelsamid, vice president of market research at Telemetry Insights, told the Detroit Free Press.

BorgWarner announced its acquisition of Akasol in early 2021 for $880 million as part of its plan to expand electric vehicle operations. The company has not announced further changes to its Michigan operations.