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US-China relations
ChinaDiplomacy

The US town, the Chinese company and the bankrupting battle over a battery plant

Residents of a Michigan township have said ‘no Gotion’ to a US$2.36 billion factory but the price they pay could be even greater

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Residents of Green Charter Township in Michigan overturned a town board that had supported Gotion’s proposed US$2.36 billion electric vehicle battery project. Photo: Facebook
Khushboo Razdan
Less than three years ago, residents of a small rural township in the US state of Michigan packed a community hall to celebrate what many saw as a victory for local democracy over a Chinese-headquartered battery manufacturer.
The residents of Green Charter Township prayed, cheered and congratulated one another for overturning a town board that had supported Gotion’s proposed US$2.36 billion electric vehicle battery project.

As the new board quickly rescinded the Gotion plan, the residents applauded the defeat of a project they viewed as a “Trojan horse” that could bring undue Chinese Communist Party influence, environmental risks and irreversible changes to their way of life.

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But the town could face a staggering financial price for that victory, leaving the community with an uncertain future.

Backed by Michigan Governor Gretchen Whitmer, the proposed project was a 109-hectare (270-acre) campus to produce lithium iron phosphate cells and EV components on a site that included more than 24 hectares of protected wetlands.
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Projected to create nearly 2,500 jobs, it was promoted as a win for domestic manufacturing and clean-energy jobs.

It was designed to support Gotion Inc’s North American expansion and US efforts onshore critical supply chains. Gotion Inc is the US subsidiary of Gotion High-Tech Co Ltd, a China-based battery manufacturer.

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