Michigan Attorney General Dana Nessel officially sent a letter on Friday (January 30) demanding that Chinese battery manufacturer Gotion refund approximately $23.7 million in state government subsidies.
The funds were originally intended to support the construction of a large-scale battery materials factory in Mecosta County, but with the project stalled, the state government has initiated the process of reclaiming public funds.
Assistant Attorney General of Michigan James Ziehmer, in a letter to Chuck Thelen, Vice President of Gotion’s North American manufacturing, pointed out that the company’s “ceasing of eligible activities” for 120 days constitutes a “waiver” of the subsidy agreement.
Danielle Emerson, spokesperson for the Michigan Economic Development Corporation (MEDC), stated that this letter marks the beginning of a 90-day countdown, with additional penalties looming if the deadline is not met.
“MEDC is actively collaborating with the Attorney General’s Office to pursue collections, with the goal of securing full repayment,” Emerson emphasized. If Gotion fails to fully refund the allocation used for land acquisition within the specified timeframe, the state government will take further legal action.
In response to the state government’s efforts to recover public funds, U.S. Congressman John Moolenaar, a long-time critic of the project, issued a brief yet powerful statement: “Pay up.”
The project, initially announced in 2022 with a planned investment of $2.4 billion and the promise of creating 2,350 job opportunities, has faced strong opposition from the local community since its inception.
Concerns raised by opponents include the environmental impact of the manufacturing plan, the opaque process of agreement between the state government and Gotion, and the relationship between the manufacturer and its Chinese parent company.
Residents of Green Charter Township even ousted officials who supported the plant in 2023, followed by the new council withdrawing key agreements such as the water supply facilities.
In documents submitted to the federal appeals court on January 20 this year, Gotion’s lawyers conceded that the reality has made it extremely difficult, if not impossible, to continue advancing the battery plant project.
The lawyers explicitly stated in another document that the project is “no longer viable.”
Despite the collapsing factory construction plan, Gotion has filed a lawsuit against the Green Township government, claiming that the local government’s breach of contract first led to the project’s obstruction and seeking “significant monetary compensation.”
The case has now been brought to the U.S. Sixth Circuit Court of Appeals.
Amid setbacks in Michigan, Gotion has pivoted its focus to a Manteno factory in Illinois. The facility officially launched its energy storage production line in October 2025 and plans to triple its workforce in 2026.
However, Gotion remains embroiled in controversy in Illinois. Local organizations have filed lawsuits regarding fire safety, environmental pollution, and land requisition, alleging direct ties between Gotion and the Chinese Communist Party, with a new round of court hearings scheduled for February this year.
Moreover, the Technology and Manufacturing Association of Illinois strongly protests the state government providing over $500 million in subsidies to businesses with Chinese backing, deeming it unfair to local enterprises.