The Michigan Senate committee approved state funds allocation of $175 million for an Electric Vehicle (EV) battery manufacturing plant – a project planned by Gotion, a Chinese company. The production facility will be located in Mecosta County’s Big Rapids, northern Michigan, and is estimated to create 2,350 jobs, in addition to strengthening the local economy.
The project is worth $2.4 billion, while the company proposed to pay $29.42 per hour on average for wages. This factory will produce cathodes and anodes of batteries, which are crucial parts of EV batteries.
After the approval decision, the supervisor of Green Charter Township, Jim Chapman, said that this plant will be the “largest single business investment in Mecosta County history,”, and is a “once-in-a-lifetime opportunity.”
The company Gotion Inc. is located in California. However, Gotion High-tech Co Ltd, its parent company, is headquartered in China. As a result, the decision has been criticized, as it posed a security threat to the nation. In addition, community members also mentioned the environmental impact that such large production plants may have.
As said in a statement by the Republican Representative, John Moolenaar, the committee’s approval was a “historic mistake.”
On the other hand, the company’s vice president for North American operations, Chuck Thelen, commented that “Despite what any current politician might say, there is no communist plot within Gotion to make Big Rapids a center to spread communism,” and that the committee determined “that our proposed transaction was not subject to further review and we may proceed with the proposed transaction,”, adding that the company cleared up any concerns, as it had undergone a voluntary review by the Department of Treasury’s Committee on Foreign Investment in the United States (CFIUS).
Previously, a significant tax incentive was approved by the Michigan Strategic Fund for a $3.5 billion EV battery plant by Ford. These efforts prove the determination of the state to attract large investments in Michigan.
