GREEN CHARTER TOWNSHIP, MI (WOWO) Gotion Inc. says it plans to seek “significant monetary damages” from Green Charter Township after opposition made it impossible to advance a planned $2.4 billion battery factory in Michigan.
The company filed the statement Tuesday in federal appeals court. It comes four months after the Michigan Strategic Fund declared the project in default for lack of progress and sought to recover $50 million in taxpayer subsidies according to Bridge Michigan.
Gotion contends that township opposition prevented the company from moving forward, making construction futile. Attorney K. Scott Hamilton of Dickinson Wright in Detroit wrote that the state “took advantage of Gotion’s plight” by issuing the default notice.
Township officials dispute Gotion’s claims. Attorney Robby Dube told the appeals court the plant will not be built and said the company failed to request any township action over 18 months. Gotion has announced plans to expand a factory in Manteno, Illinois, instead.
The project, announced in 2022, drew controversy because of Gotion’s Chinese ties. Initial township leaders had approved infrastructure plans, but new officials rescinded the agreement in 2023 after being elected by residents.
The state’s Strategic Outreach and Attraction Reserve Fund initially allocated $175 million to the project. About $125 million was unspent, and $50 million was given to the development group The Right Place to aid Gotion.
Green Charter Township has struggled with legal costs, with Mecosta County contributing $193,000 toward its shortfall. The federal appeals court is now considering whether the litigation can proceed.
