In a dramatic legal confrontation, China’s Gotion has initiated legal proceedings against Green Charter Township in Michigan, alleging a breach of contract regarding the establishment of water lines for its envisioned $2.36 billion battery component facility.
Situated in Big Rapids, approximately 60 miles north of Grand Rapids, Gotion’s plant was poised to generate 2,350 employment opportunities while churning out an estimated 150,000 tons of cathode material and 50,000 tons of anode material annually.
The lawsuit, lodged in a federal court in Michigan, contends that the township reneged on its contractual commitments subsequent to initially endorsing Gotion’s proposal to link Big Rapids’ water system with the project.
Gotion seeks a preliminary injunction from the court mandating the township to complete the water line connections to its facility. In its legal filing, Gotion asserted, “This Court should order the Township to comply with its obligations under the parties’ agreement.”
As of now, there has been no immediate response from the township regarding a request for comment from Reuters.
The enactment of the Biden administration’s 2022 Inflation Reduction Act necessitated the assembly of electric vehicles in North America to qualify for tax credits, prompting automakers to accelerate their efforts in procuring battery and component manufacturing capabilities.
Gotion, a publicly traded entity in China, also recognized as Guoxuan High-Tech Company, holds partial ownership by German automotive giant Volkswagen AG.
