LANSING, Mich. — LANSING, Mich. (AP) — Michigan is demanding millions of dollars in incentives back from a Chinese company after plans to build an electric vehicle battery plant collapsed following years of pushback against the project from neighbors and members of Congress.
Democratic Gov. Gretchen Whitmer supported the $2.36 billion factory in 2022, and state lawmakers approved nearly $175 million in incentives for the project. The state is now holding Gotion Inc. in default of $23.6 million, accusing the company of abandoning the project.
“While this is not the outcome we hoped for, we recognize the tremendous responsibility we have to the people we serve to make sure their hard-earned tax dollars are spent wisely and appropriately,” Danielle Emerson, a spokesperson with the Michigan Economic Development Corporation, said in a statement.
Representatives for Gotion, which is headquartered in California, did not respond to multiple messages seeking comment.
In a letter dated Sept. 17, Michigan informed Gotion that it was in default of economic development grant obligations because no “eligible activities” had occurred on the site’s property in over 120 days.
According to the MEDC, the state is seeking to claw back $23.6 million that was disbursed toward the purchase of the site’s land near Big Rapids, about 200 miles (322 kilometers) northwest of Detroit. $26.4 million remaining from the grant that was not spent will be returned to the state, Emerson said. Citing a lack of progress on the project, a different $125 million grant was not distributed to Gotion.
The news was first reported by Crain’s Detroit Busi
