Feb 02, 2026
LANSING, MI (WOWO) Michigan is escalating efforts to recover nearly $24 million in state subsidy funds from electric vehicle battery maker Gotion Inc., whose planned factory near Big Rapids has stalled amid legal disputes. Attorney General Dana Nessel’s office sent a letter to Gotion last week act ing as debt collector on behalf of the Michigan Strategic Fund, which awarded the subsidies. The letter demands repayment of $23,670,873.56 and gives the company 90 days to return the funds without penalty, according to Bridge Michigan. The subsidy money was funneled through the economic development organization The Right Place to purchase land and begin site development for the $2.4 billion factory. The Michigan Strategic Fund originally awarded Gotion $170 million from its now-unfunded Strategic Outreach and Attraction Reserve program. The factory was projected to employ 2,350 workers by 2030. However, the project became controversial due to opposition from Green Charter Township, which revoked a development agreement related to necessary infrastructure like water lines. Gotion challenged the revocation in federal court, winning a temporary injunction requiring the township to honor the deal during appeals. Despite the injunction, no construction has occurred, leading the state to declare Gotion in default on its subsidy award last September. Gotion’s attorney argued that moving forward would have been futile given the ongoing litigation, and called the state’s default decision opportunistic. Green Charter Township’s attorney urged the appeals court to dismiss the injunction. While Gotion owns the land funded by the state, it cannot sell or transfer it without approval from the Michigan Strategic Fund, which is currently considering next steps regarding an additional $26.4 million held by The Right Place. The dispute has drawn attention amid broader concerns over economic development deals and U.S.-China relations, as Gotion is a U.S.-based subsidiary of China’s Gotion High Tech. Neither Gotion representatives nor the township have commented further as the matter proceeds through legal and administrative channels. The post Michigan Seeks $24 Million From Gotion Over Factory Delay appeared first on WOWO News/Talk 92.3 FM and 1190 AM. ...read more read less
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