The state of Michigan is ending its support of a $2.4 billion electric vehicle battery plant that was planned for development outside of Big Rapids. That's according to the state's economic development office who said Thursday that the Chinese company Gotion Inc. failed to meet contractual obligations.
The plant was projected to bring 2,300 jobs to the region and was backed by $270 million in state funds.
Since the plans were announced to bring the plant to Green Charter Township, the project has been mired in controversy. The plans received pushback from locals and national Republicans over Gotion’s public ties to the Chinese Communist Party.
In a letter addressed to Gotion, the Michigan Economic Development Corporation, the agency overseeing the state’s role in the project, said the company is now in default on its contract and has been inactive on meeting benchmarks for more than 120 days. The MEDC said they’re now seeking to claw back over $23 million in state funds Gotion used to purchase the land for the plant.
“While this is not the outcome we hoped for, we recognize the tremendous responsibility we have to the people we serve to make sure their hard-earned tax dollars are spent wisely and appropriately,” an MEDC spokesperson wrote in an email to WCMU.
Republican lawmakers in Michigan praised the announcement from the state on Thursday.
For years, Republican lawmakers were a part of the loud chorus of local voices in Green Charter Township who argued state tax dollars should not be used to support a foreign manufacturer.
Critics were also skeptical of the Chinese government’s intentions behind the plant and feared it would be used for nefarious reasons. Nation security concerns were raised because of the plant’s proximity to Camp Grayling, the nation’s largest National Guard training facility that sits about 100 miles north of Green Charter Township.
Locals also argued the facility would harm the area’s natural resources, which lead to Gotion suing Green Charter Township. The company accused local officials of breaching a contract by prohibiting their access to water needed for plant operations.
U.S. Rep. John Moolenaar, (R-Caledonia) who represents the Big Rapids area, has been a long-time critic of the project. As chair of the House Select Committee on the Chinese Communist Party, Moolenaar elevated the issues brought to him by constituents during several high-profile committee hearings.
He wrote a bill, known as the NO GOTION policy, prohibiting tax dollars from going to CCP-backed companies. It was signed into law as part of President Trump’s Big Beautiful Bill earlier this year.
Moolenaar told WCMU he was inspired by the people who spoke out against Gotion. For years, a grass roots movement decried the decision to develop the plant and held several protests and tense public meetings. All members of the Green Charter Township who supported the plant, were voted out of office.
“They put their lives on the line,” Moolenaar said. “They put their fortunes, their sacred honor, they were really, truly patriotic in terms of speaking out on this and I'm just pleased their voice has been heard.”
In an interview with the Detroit News, Chuck Thelen, Gotion's vice president for North American manufacturing, pointed blame at the local opposition for the company's inability to meet the grant requirements. He added that he's open to a conversation with state and local official about the project's future.
“Gotion, however, recognizes the significance of the hurdles that have been placed in front of this project by those who oppose it,” Thelen told the Detroit News. “And, it is true that the local municipalities’ actions are presenting a barrier to the project proceeding and, without their support, neither this project nor any other project could be completed.”
State Rep. Tom Kunse, (R-Clare) whose district includes Green Charter Township, said the announcement shows why corporate welfare doesn’t work. Kunse is calling on lawmakers to put forth stronger accountability and transparency policies in how the state funds are awarded for economic development projects.
“Taxpayer funded incentive deals often fail to deliver on promises, leaving our communities with broken commitments and wasted public dollars,” Kunse said in a press release. ”Promises of jobs and investment mean nothing if companies cannot meet their obligations.”
Gotion remains embroiled in multiple lawsuits between Green Charter Township and Mecosta County. Jason Kruse, Green Charter Township’s supervisor, declined to comment on this story due to the ongoing litigation.
"Hopefully we'll be able to bring more economic development to Mecosta County that does not have ties to the Chinese Communist Party," Moolenaar said.
