Michigan Demands Repayment from EV Battery Maker Gotion Amid Abandoned Plant Plans
An ambitious plan to establish an electric vehicle battery plant in Mecosta County, Michigan, has unraveled, leading the state to seek repayment of substantial incentive funds from the company behind the project. Michigan Attorney General Dana Nessel’s office is now involved in efforts to reclaim nearly $23.7 million from Gotion, Inc., after the company apparently abandoned its plans.
Assistant Attorney General James Ziehmer, in a letter dated January 30, informed Gotion of the Michigan Strategic Fund’s demand for immediate repayment of funds initially provided under a Strategic Site Readiness Program grant. This move is part of a broader effort by the state to recover incentives that were once hailed as a catalyst for economic growth and job creation in Green Charter Township.
In 2022, Michigan lawmakers and Governor Gretchen Whitmer approved $715 million in incentives, including an estimated $540 million in tax breaks, to support Gotion’s proposed battery plant. The project was expected to bring 2,350 jobs to the community located about an hour north of Grand Rapids. However, the plan faced significant local opposition, leading to political upheaval and legal battles.
After Green Township voters ousted local officials who supported the plant in 2023, the new township board reversed a decision to extend the city’s water supply to the plant site. In response, Gotion filed a lawsuit, and U.S. District Judge Jane Beckering granted a preliminary injunction in May 2024, ordering the township to follow through with its original plan. Despite this, construction progress stalled, and the Michigan Economic Development Corporation (MEDC) issued a notice of default to Gotion in September 2025, withdrawing a $125 million Critical Industry Program grant and demanding repayment of the site readiness funds.
Gotion has yet to comply with the repayment request. The recent letter from the Attorney General’s office marks the beginning of a 90-day period for Gotion to return the funds without incurring additional penalties, as noted by MEDC spokesperson Danielle Emerson. Emerson stated, “MEDC is actively working with the Department of Attorney General on these collection activities with an objective to secure repayment of the entire amount owed.”
The ongoing litigation between Gotion and Green Township remains unresolved, with the case now before the U.S. Sixth Circuit Court of Appeals. In recent court filings, Gotion has argued that delays are attributable to the township and indicated plans to amend its complaint to seek monetary relief.
Amidst these developments, Gotion’s ties to China have drawn scrutiny. The company’s presence in Michigan has been criticized by some, including U.S. Representative John Moolenaar, who has been a vocal critic due to Gotion’s Chinese connections. In response to the state’s repayment demand, Moolenaar issued a succinct statement: “Pay up.”
This intricate situation continues to unfold, with significant financial and legal implications hanging in the balance.
Original Story at www.freep.com