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'NO GOTION' policy passes U.S. House, limits ability to claim green energy credits

Mecosta County residents are voicing opinions over the Gotion manufacturing facility being built, August 21, 2024. Residents have adorned their tractors and other vehicles with political signage.
Rick Brewer
/
WCMU
Mecosta County residents gathered at a horse farm on August 21, 2024 in protest of the proposed construction of a $2 billion EV battery manufacturing plant.

A controversial proposed electric vehicle battery plant run by the company Gotion in mid-Michigan faces an uncertain future. That’s because a policy that would ban companies with ties to China from green energy tax credits has moved through the U.S. House earlier this month.

Gotion is a Chinese tech company. Their American subsidiary has plans to build an EV battery plant in Green Charter Township, located in Mecosta County. The $2 billion plant received over $175 million in state incentives.

The NO GOTION policy passed within the Big Beautiful Bill Act. It was introduced by U.S. Rep. John Moolenaar (R-Caledonia). The act would ban companies aligned with the Chinese government from taking advantage of green tax incentives in the Inflation Reduction Act.

Moolenaar supports ending the mid-Michigan Gotion project, arguing Gotion's public ties to the Chinese Communist Party are a national security threat.

In a statement, Moolenaar touted the legislation saying the bill would ensure Michigan tax dollars “never go to Gotion and other companies affiliated with the Chinese Communist Party.”

Last year, a Foreign Agents Registration Act filing stated “Gotion is partially subsidized through government funding supplied by the People's Republic of China.”

The legislation currently sits in the Senate.

Skepticism of the Gotion deal has some bipartisan support. The original NO GOTION Act was cosponsored by three Democratic members of the House.

In addition, then-Representative Elissa Slotkin (D-Holly) introduced a bill that would give the Committee on Foreign Investment more power to review sales to China-based companies. That bill had a Senate version backed by Democratic U.S. Senators Gary Peters and Debbie Stabenow. Neither version passed.

Gotion is currently suing Green Charter Township over a breach of contract, work at the plant there is on hold.

Gotion did not respond to a request for comment. Senators Peters and Slotkin, and Green Charter Township Supervisor Jason Kruse did not respond to a request for comment.

AJ Jones is the general assignment reporter for WCMU. He is a graduate of the University of Michigan-Dearborn, and a native of metro-Detroit.
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