Chinese-Owned Gotion Halts US$2.4b Michigan EV Battery Plant Amid Political Backlash

WASHINGTON: A subsidiary of Chinese battery maker Gotion has suspended plans to build a US$2.4 billion electric vehicle battery materials plant in Michigan, state officials confirmed. The Michigan Economic Development Corporation (MEDC) said no part of the US$125 million grant had been released and it would seek repayment of US$23.6 million used for land acquisition.

Gotion in USA

The project, announced in 2022, was expected to create 2,350 jobs but faced heavy criticism over Gotion’s Chinese ownership. Although Germany’s Volkswagen holds a 30 per cent stake, US lawmakers contend Beijing maintains “effective control” through private investors. Gotion’s lawyer denied abandoning the project, blaming “continuing attacks” and local opposition for the suspension. The state earlier declared the firm in default for inactivity exceeding 120 days and demanded a response within 30 days.

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