GOTION, MI (WOWO) Michigan’s ambitious $2.4 billion electric vehicle battery plant project by Gotion Inc., planned near Big Rapids, is officially dead. The Michigan Economic Development Corporation (MEDC) announced that Gotion is in default of its agreement, leaving the state to recoup $23.6 million spent on land for the project.

The plant, which promised 2,350 jobs, faced years of lawsuits, local opposition, and scrutiny over Gotion’s Chinese ties. Residents and activists had long opposed the project due to concerns about environmental impacts, size, and viability. Some local officials who initially supported the project were recalled by voters in 2023.

Gotion’s attorney called the default “shocking,” citing political opposition and litigation delays. MEDC said the state will now pursue repayment for land costs, though the remaining pledged $175 million had not yet been used.

The project’s collapse follows similar setbacks for other high-profile Michigan initiatives, including Sandisk’s $63 billion semiconductor plant and several EV projects funded by the state’s Strategic Outreach and Attraction Reserve (SOAR) program. Lawmakers continue to debate reforms to Michigan’s economic development incentives.

Residents and local activists celebrated the decision. Marjorie Steele, founder of the Economic Development Responsibility Alliance, said, “It’s about damned time,” citing concerns that state and local officials had railroaded the project.

The next steps remain unclear. Some economic leaders worry the state may struggle to recover funds or prevent similar failures in the future, highlighting ongoing questions about SOAR and taxpayer-funded corporate incentives.