EV battery maker Gotion abandons plan for US$2.4 billion factory in Michigan

A subsidiary of Chinese battery company Gotion has abandoned a plan to build a US$2.4 billion plant in Michigan to produce essential materials for electric vehicle batteries, the state said on Thursday.

The plan, first announced in October 2022, was expected to create 2,350 factory jobs but came under criticism from some lawmakers for the company’s Chinese ownership.

The Michigan Economic Development Corporation (MEDC) said none of a US$125 million state grant for the project was ever disbursed and it will pursue repayment of another US$23.6 million state award that went towards the purchase of the property.

Germany’s Volkswagen is the largest single shareholder in Gotion’s parent company, owning about 30 per cent of Gotion High-Tech. US lawmakers said last month China maintains “effective control” through multiple individual shareholders.

Gotion could not immediately be reached for comment. Volkswagen was not available to comment.

In March 2024, Gotion sued Green Township in Michigan for allegedly breaching an agreement to build the factory.