China’s Gotion sues Michigan’s Green Charter township to restore water to US$2.4 billion battery plant
- Gotion’s plant is located in Big Rapids, about 60 miles (97km) north of Grand Rapids
- The plant was expected to create 2,350 jobs and produce up to 150,000 tons of cathode material and 50,000 tons of anode material a year
China’s Gotion filed a lawsuit on Friday against Green Charter Township in Michigan, citing breach of contract over the connection of water lines to its planned US$2.36 billion battery component plant in the state.
Gotion’s plant, located in Big Rapids, about 60 miles (97km) north of Grand Rapids, was expected to create 2,350 jobs and produce up to 150,000 tons of cathode material and 50,000 tons of anode material a year.
In the lawsuit, which was filed in a federal court in Michigan, Gotion said the township reneged on its contractual obligations after initially adopting a resolution approving the company’s plans to connect Big Rapids’ water system to the project.
Gotion is seeking a preliminary injunction from the court to direct the township to connect the water lines to its plant.
“This Court should order the Township to comply with its obligations under the parties’ agreement,” Gotion said in its lawsuit.
The township did not immediately respond to a Reuters request for comment.
The Biden administration’s 2022 Inflation Reduction Act required that electric vehicles be assembled in North America to qualify for any tax credits. Carmakers have since been racing to source more battery and component production.
Gotion, a publicly traded company in China also known as Guoxuan High-Tech Company, is partly owned by German carmaker Volkswagen.
