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Michigan AG asks Chinese battery maker Gotion to return $23.7 million after defaulting on US plant
Published by Global Banking and Finance Review
Posted on January 30, 2026
2 min readLast updated: January 30, 2026
Home > Finance > Michigan AG asks Chinese battery maker Gotion to return $23.7 million after defaulting on US plant
Quick Summary
Michigan AG demands $23.7M back from Gotion after defaulting on a $2.4B EV battery plant project, citing unresolved issues and Chinese ownership concerns.
Michigan AG Demands $23.7 Million Back from Gotion After Default
Michigan AG's Action Against Gotion Inc.
By David Shepardson
Background of the Project
WASHINGTON, Jan 30 (Reuters) - Michigan Attorney General Dana Nessel on Friday asked Chinese battery company Gotion Inc to return $23.7 million in state funds the company received after the company last year abandoned a plan to build a $2.4 billion plant in Michigan to produce key materials for electric vehicle batteries.
Response from Gotion Inc.
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. Gotion did not immediately respond to a request for comment.
Concerns Over Chinese Ownership
Nessel's office said in a letter to Gotion that it was in default on its agreement and not resolved the issues. It gave Gotion 30 days to repay the funds.
The Michigan Economic Development Corporation said last year none of a separate $125 million state grant for the project was ever disbursed and said Gotion had abandoned the project. Gotion denied that but lawyers for the company said in a court filing earlier this month the project "is no longer viable."
Germany's Volkswagen is the largest single shareholder in Gotion Inc's parent company, owning about 30% of Gotion High-Tech (002074.SZ) U.S. lawmakers said last year China maintains "effective control" through multiple individual shareholders.Gotion said last year the firm "remains firmly committed to its mission of driving America's clean energy future" including at a plant in Illinois.In March 2024, Gotion sued Green Township in Michigan for allegedly breaching an agreement to build the plant.Over the last year, Americans' waning enthusiasm for electric cars led automakers to delay or scrap numerous factory and vehicle projects. After recent EV policy changes by the Trump administration, automakers are further retrenching.
(Reporting by David Shepardson in Washington;Editing by Chizu Nomiyama)
Key Takeaways
- •Michigan AG demands return of $23.7 million from Gotion.
- •Gotion defaulted on a $2.4 billion EV battery plant project.
- •The project was expected to create 2,350 jobs in Michigan.
- •Concerns raised over Gotion's Chinese ownership.
- •Volkswagen is a major shareholder in Gotion's parent company.
Frequently Asked Questions about Michigan AG asks Chinese battery maker Gotion to return $23.7 million after defaulting on US plant
1What is an electric vehicle battery?
An electric vehicle battery is a rechargeable battery used to power electric vehicles, providing the necessary energy for propulsion and other functions.
