According to Sina Finance, people familiar with the matter said General Motors is preparing to sell half of its stake in a planned $3.5 billion electric vehicle battery joint venture in Indiana to partner Samsung SDI.

Samsung SDI is expected to acquire the 680-acre site, take over the joint venture, and own the battery manufacturing plant in New Carlisle, Indiana. General Motors had originally hoped the factory would produce enough energy-storage products amid growing demand for electric vehicles.

People familiar with the matter said it was not yet clear how Samsung SDI would handle the plant. Samsung SDI did not immediately respond to a request for comment.

General Motors' retreat from battery production is the latest step in a long-term strategic shift by the automaker. Although General Motors and other companies have heavily promoted electric vehicles, demand has fallen short of expectations as U.S. consumers remain cautious about plug-in hybrid vehicles and the Trump administration has canceled federal sales incentives that could have boosted demand.