Will Gotion Factory Go Forward or Just Go Away?

[XLFD]

It has been a couple of years since our first time of looking at the proposed Gotion project in nearby Mecosta County, and had everything went according to the plan of our state leaders and that company, we would likely be looking now at a finished electric vehicle battery plant from the China-based company funded with well over one billion dollars of state and local subsidies from the good citizens of Michigan.  

But the plan ran into many of those citizens who felt like this was a bad idea, just like the Ludington Torch did and still does.  Citizens of Green Township, where the plant was to be located in, citizens of Mecosta County, and citizens of the state, all rose up with their proverbial torches and pitchforks and have put this project in jeopardy.  Showing once again that few things can thwart an energized public united in outrage over outrageous government boondoggles like this appears to be.

But many of these organic citizen maneuverings may have come to naught if Donald Trump had not won the November election and kept his promise after his inauguration to repeal Biden's executive orders dramatically favoring electric vehicle production, by giving consumers back a free market choice.  That act and a likely Tesla sales backlash among those most likely to buy them has reduced demand for electric vehicle batteries.

Two weeks later, legislation was introduced in the US Congress called the NO GOTION Act by Mason and Mecosta County's representative in the US House, John Moolenaar.  Moolenaar explained that “right now there is a loophole that allows Inflation Reduction Act tax credits to go to Chinese companies” and the NO GOTION Act “makes sure CCP-affiliated companies will not be able to receive tax credits.”

One month later, this was almost replicated at the state level, with the Republican-controlled House unveiled ten bills meant to remove Michigan's welcome mat for entities of foreign concern, notably the CCP, from receiving subsidization, data, agricultural land, etc. 

Such actions amid widespread citizen dissatisfaction with the project, have allowed Gotion to reassess their position.  Last Friday, Gotion's CEO in North America, Chuck Thelen confirmed the company halted its environmental studies and permitting process through the Department of Environment, Great Lakes and Energy as its legal battle with Green Charter Township drags into year two.

Thelen previously told the media Gotion would continue to pursue permits.  While the deal was initially approved by a conflicted Green Charter Township’s board in August 2023, voters recalled all members of the board over the support, installing new board members that immediately moved to kill the agreement.  This is how the will of the people comes to the forefront after it is ignored.  One of those original trustees was caught selling their land to the company for eleven times its value.

The change prompted Gotion to file a lawsuit against the township for breach of the development agreement, and Judge Jane M. Beckering issued a preliminary injunction in May 2024 ordering the township to comply, which the township is currently appealing.

November elections not only saw the election of Trump, who was 100% opposed to this project and who has little patience for electric vehicle mandates or incursions of subsidized Chinese factories into America, but also saw a newly elected Mecosta County board of commissioners who after being seated, pulled support for Gotion, citing “92% of … Mecosta County residents” who oppose the plant and “new information and developments” regarding Gotion’s direct ties to the CCP.  Local governments agree that this was foremost a national security issue.

“The residents of Mecosta County have made it clear multiple times they do not support Gotion operating in their community,” Moolenar said in a statement on Saturday. “The company has continuously misled the public about its close ties to the CCP and refused to heed election results, instead deciding to sue a small town that doesn’t want it.

“Gotion’s announcement it is pausing its application process is good news, however, it should listen to the people of Mecosta County and end its plans in Michigan once and for all,” the congressman said.

Moolenaar points to federal filings that admit Gotion is “wholly owned and controlled” by parent company Gotion High-Tech, and receives subsidies from the Chinese government.

Gotion High-Tech employes hundreds of CCP members and hosts field trips for those employees to pledge their lives to the CCP.

“Since the company announced its project in 2022, it has been discovered an executive at the company attends meetings of the parent company’s internal CCP committee,” according to Moolenaar. “Last year, an investigation conducted by the Select Committee on the CCP … found that Gotion’s supply chain is reliant on forced labor that is a part of the CCP’s ongoing genocide of Uyghur Muslims, a religious minority in China.”

The cards at this point do not appear to be in favor of Gotion or their dwindling number of proponents wanting this government subsidized project to go forward.  Other less controversial EV battery plants in Michigan are also undergoing negative changes at this point, like Samsung laying off 200 employees at its Auburn Hills plant in February, suggesting the market at this time may not be ready to profit from such a project, except through the subsidization.