Chinese battery firm sues Michigan town for attempt to block proposed plant

A Chinese battery firm filed a lawsuit against a Michigan township on Friday for its attempt to block the company's proposed plant, the Detroit News reported.

Gotion Inc., headquartered in Silicon Valley, has plans to build a $2.4 billion electric vehicle battery parts factory in Green Charter Township. The town's former board approved a water line necessary for the plant, a decision the new board has since rescinded. All of the board's former members were either voted out or opted to resign, Blaze News previously reported.

Residents have expressed concerns about the company's ties to the Chinese Communist Party. Gotion Inc.'s parent firm, Gotion High-Tech, is based in China.

Despite residents' opposition to the new plant, the former board approved a $2 billion deal with Gotion Inc. in December 2020, claiming it would create 2,350 new jobs. Five of the board's seven members were recalled by voters for failing to listen to their concerns about the facility. The other two members opted to resign.

The lawsuit accuses the township of breaching its development agreement with Gotion Inc., which requires it to aid the firm in "obtaining the necessary governmental authorizations" to move forward with the plant's construction.

"To prevent the township's sudden recalcitrance from unraveling an endeavor already years and millions of dollars in the making, this court should order the township to comply with its obligations under the parties' agreement," the lawsuit read.

Chuck Thelen, vice president of North American manufacturing for Gotion Inc., said Friday, "It's unfortunate that Gotion has had to resort to litigation to get the township to comply with their obligations under the agreement."

"We're unable to comment further since this is now an ongoing legal matter," he added.

The lawsuit seeks to require the town to restore the statute supporting the water line extension. It also asks the court to block the township from suing Mecosta County after the town requested the county halt its review of the plant's site plan and permit application while it works on adopting a separate zoning ordinance.

Green Township Supervisor Jason Kruse stated, "As township supervisor, my number one concern is protecting the interests of the people of Green Charter Township, and we will vigorously defend our township's position in the matter."

"We might be a small community, but we refuse to be bullied," Kruse remarked.

The Detroit News reported that Gotion Inc. will receive $175 million in state tax incentives and an estimated $540 million worth of tax breaks.

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