By David Shepardson
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.
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.
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)
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