Gotion High-Tech’s $2.4 billion lithium battery project in the United States has been suspended due to legal disputes with the local government in Green Charter Township, Michigan. According to reports from German media outlet Battery-News, the project faced opposition from local residents concerned about its potential environmental impact and Gotion’s links to China. Consequently, during the ongoing review by the U.S. Sixth Circuit Court of Appeals, Gotion temporarily withdrew its permit applications submitted to the Environmental Protection Agency, Great Lakes, and the Department of Energy.
The Gotion Michigan Power Battery Project, which is managed by Gotion's U.S. subsidiary <b>Gotion Inc</b>, planned to build several battery material factories, including one with an annual production capacity of <b>150,000 tons</b> of battery cathode materials and two others producing <b>50,000 tons</b> each of battery anode materials. The total investment was approximately <b>$2.4 billion</b>. Planning for this project began in <b>October 2022</b> and received strong support from local Michigan government officials. At that time, Michigan Governor <b>Gretchen Whitmer</b> publicly announced the project, which also benefited from <b>$125 million</b> in financial subsidies and <b>$540 million</b> in 30-year tax incentives from the state government. Additionally, the economic development organization <b>The Right Place</b> provided <b>$50 million</b> in funding.
However, it wasn't until a year later, in <b>October 2023</b>, that Gotion officially announced the project, stating it would commence production in <b>January 2026</b>. The reasons for the year-long delay in the announcement remain unclear, and since then, there have been no further official updates from Gotion regarding the project's progress. Despite the lack of formal announcements, media reports indicate that the project has faced numerous challenges and setbacks since its inception. Local community opposition emerged early on, with some residents perceiving the project as a Chinese government investment and calling for its cancellation. In <b>August 2023</b>, the Green Charter Township council approved a development agreement with Gotion, but following local elections at the end of that year, the newly formed council withdrew its support for the project in <b>March 2024</b>. Adding to the difficulties, two council members who supported Gotion's project resigned in early <b>2023</b>.
In November of the same year, five council members lost voter support for backing local tax reductions related to the factory's construction and left the council. Unwilling to let the project stagnate, Gotion filed a lawsuit against the Michigan state court, citing breach of contract. In <b>May 2024</b>, the Michigan court issued an injunction requiring the local government to adhere to the original agreement, which the local government subsequently appealed. Gotion has not officially disclosed the outcome of this case. If the recent reports from Battery-News are accurate, Gotion may have lost this legal battle.
As of now, Gotion has established two production bases in the U.S., located in <b>Illinois</b> and <b>Silicon Valley</b>. The Illinois facility encompasses battery cell production, packaging, and energy storage system integration with a planned total capacity of <b>40 GWh</b>, while the Silicon Valley site focuses on battery pack assembly. It's important to note that for Chinese lithium battery manufacturers, entering the U.S. market is particularly challenging, and establishing local manufacturing facilities is even more difficult. Gotion's ability to navigate these challenges can be attributed to its early investments in the U.S. market, having established the <b>Silicon Valley Research Institute</b> in <b>2015</b> and acquired a team from <b>BASF</b> in <b>2017</b>, leading to the opening of a research institute in <b>Cleveland, Ohio</b>.
With the rise of initiatives to bring manufacturing back to the U.S., particularly after the Trump administration's policies, the prospects for the Gotion Michigan Power Battery Project to revive appear increasingly bleak.
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