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Michigan Ends Gotion Battery Plant Deal, Demands $23.6 Million Repayment

State officials cited prolonged inactivity plus litigation as grounds for default under the grant.

Overview

  • The Michigan Economic Development Corporation terminated its agreement with Gotion and is seeking to claw back $23.6 million tied to the site purchase while confirming a separate $125 million grant was never disbursed.
  • An MEDC notice said no eligible activity occurred at the Big Rapids–area site for more than 120 days and identified project-related lawsuits as a material adverse effect that triggered default.
  • Gotion rejected claims that it abandoned the project in a letter calling the allegation “utterly false,” while acknowledging a six‑month suspension of work to reassess the site after sustained local opposition.
  • Local resistance in Green Charter Township included the 2023 recall of officials who backed the plant and the rescission of local approvals, followed by dueling litigation including a March 2024 suit by Gotion against the township.
  • Political critics, led by Rep. John Moolenaar, pointed to national‑security concerns amplified by Gotion’s FARA disclosure of partial PRC subsidies, even as Volkswagen holds about 30% of Gotion High‑Tech, and coverage noted broader EV market retrenchment and policy shifts weighing on such projects.