A multibillion Chinese tech company plans to seek damages against a small mid-Michigan town.
Late last year, state economic development officials clawed back subsidies for a $2.4 billion electric vehicle battery plant near Big Rapids.
Construction was stalled by a lawsuit between Green Charter Township and Gotion, the Chinese tech company building the plant. The lawsuit claims the township revoked Gotion's access to the local water supply, which is needed to make EV batteries.
Now, in a new legal filling, Gotion is seeking fiscal damages. They argued in court documents Tuesday the township’s opposition to the plant constituted a contract breach and has rendered the plant “no longer viable.”
The filing was in response to a judge asking the parties if the case was moot, because the plant will likely never be built.
For years, locals protested against the plant. In addition, several Republican lawmakers, led by U.S. Rep. John Moolenaar (R-Caledonia), opposed the plant because of Gotion's public ties to the Chinese Communist Party.
In a statement, Moolenaar said the latest legal action was a “new low” and an attempt to bankrupt Green Charter Township.
“The people of Mecosta County, and the State of Michigan have thoroughly rejected it, but it is still trying to hold the town hostage," Moolenaar said. "The CCP-affiliated company will stop at nothing to build a plant that no one wants."
A reoccurring criticism was the plant's proximity to Camp Grayling, the largest National Guard training base in America, which sits 100 miles north of the proposed site. Republicans feared the plant would be used as a hub to conduct spy operations on training exercises.
The years-long lawsuit has been costly, and the community is working on a path forward to address growing legal fees, said Township Supervisor Jason Kruse.
Last year, Mecosta County provided $193,987 from marijuana taxes to the township to help pay legal fees.
“It's just terrible to watch the amount of money that's chewed up," Kruse told WCMU. "That could have just gone to other township projects."
Green Charter's lawyers argue the case should be dismissed. In a separate filing, the township’s legal team said “Gotion no longer intends to develop the plant and soon will not own the Gotion property. This court can afford no real relief.”
Gotion's legal team have not yet responded to a request for comment.
The Michigan Economic Development Corporation said they are seeking $23 million back in funding for the project, after failing to meet progress benchmarks to continue receiving funds. Lawmakers approved $270 million in state subsidies for the plant’s construction.
